FILE- In this Oct 2, 2018, file photo a for sale sign stands outside a home on the market in the north Denver suburb of Thornton, Colo. On Thursday, Nov. 8, Freddie Mac reports on this week's average U.S. mortgage rates. (AP Photo/David Zalubowski, File)

US mortgage rates jump to highest level in 7 years

November 08, 2018 - 11:09 am

U.S. mortgage rates jumped this week to the highest level in seven years, a trend that is pulling down home sales and slowing home price growth.

Mortgage buyer Freddie Mac said Thursday that the average rate on a 30-year, fixed rate mortgage rose to 4.94 percent, from 4.83 percent last week. A year ago the rate was 3.9 percent.

The average rate on a 15-year, fixed rate loan increased to 4.33 percent, from 4.23 percent last week.

Higher rates have kept many would-be purchasers on the sidelines. Sales of existing homes have fallen for six straight months, and sales of newly-built homes have declined for four months.

Freddie Mac says home price increases are slowing as a result, particularly in higher-priced coastal cities.

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