US mortgage rates rise; 30-year at 5.27%, highest since 2009

May 5, 2022, 9:52 AM | Updated: May 6, 2022, 2:02 am
FILE This is a home sold in Mount Lebanon, Pa., on Tuesday, Sept. 21, 2021. Average long-term U.S. ...

FILE This is a home sold in Mount Lebanon, Pa., on Tuesday, Sept. 21, 2021. Average long-term U.S. mortgage rates resumed their ascent this week, Thursday, May 5, 2022, as the key 30-year loan reached its highest point since 2009. (AP Photo/Gene J. Puskar)

(AP Photo/Gene J. Puskar)

WASHINGTON (AP) — Average long-term U.S. mortgage rates resumed their ascent this week, as the key 30-year loan reached its highest point since 2009.

The increases came in the week preceding the widely anticipated action by the Federal Reserve, announced Wednesday, to intensify its fight against the worst inflation in 40 years by raising its benchmark interest rate by a half-percentage point and signaling further large rate hikes to come. The Fed’s move, its most aggressive since 2000, will bring higher costs for mortgages as well as credit cards, auto loans and other borrowing for individuals and businesses.

Mortgage buyer Freddie Mac reported Thursday that the 30-year rate rose to 5.27% from 5.1% last week, when it edged down after seven weeks of increases. By contrast, the average rate stood at 2.96% a year ago.

The average rate on 15-year, fixed-rate mortgages, popular among those refinancing their homes, jumped to 4.52% from 4.4% last week.

With inflation at a four-decade high, rising mortgage rates, elevated home prices and tight supply of homes for sale, homeownership has become less attainable, especially for first-time buyers.

Some economists suggest that home sales this year could decline as much as 10% from 2021 levels.

In a statement Wednesday following their two-day meeting, Fed policymakers noted that Russia’s invasion and war on Ukraine is worsening inflation pressures by raising oil and food prices. Inflation, according to the Fed’s preferred gauge, reached 6.6% last month, the highest in four decades. It has been accelerated by a combination of robust consumer spending, chronic supply bottlenecks and sharply higher gas and food prices.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

Soldiers stand guard as Hindu devotees begin the Amarnath Yatra annual pilgrimage to to an icy Hima...
Associated Press

India Hindus begin pilgrimage in Kashmir amid heavy security

SRINAGAR, India (AP) — Thousands of Hindu devotees began an annual pilgrimage Thursday through mountain passes and meadows to an icy Himalayan cave in Indian-controlled Kashmir amid heavy security in the Muslim-majority region. Officials say pilgrims face heightened threat of attacks from rebels fighting against Indian rule and have for the first time tagged devotees […]
1 day ago
FILE - A man walks near an advertisement of a Kirin brand beer in Tokyo on Aug. 25, 2020.  Kirin Ho...
Associated Press

Japan’s Kirin to sell Myanmar Brewery to sanctioned partner

BANGKOK (AP) — Kirin Holdings will sell its shares in Myanmar Brewery to its joint venture partner Myanma Economic Holdings Plc., the Japanese beverage giant said in a statement Thursday. Kirin said the share buyback agreement with MEHL, a company facing sanctions by the U.S. and other Western governments, took into account its employees and […]
1 day ago
A currency trader walks by the screen showing the Korea Composite Stock Price Index (KOSPI) at a fo...
Associated Press

Asia stocks mixed after Wall St down, China manufacturing up

BEIJING (AP) — Asian stock markets were mixed Thursday after the U.S. economy contracted and China reported stronger factory activity. Shanghai and Hong Kong gained, while Tokyo and Seoul declined. Oil prices advanced. Wall Street’s benchmark S&P 500 index edged down 0.1% on Wednesday after data showed the U.S. economy shrank in the first quarter […]
1 day ago
New Zealand Police Minister Chris Hipkins during his press conference at Parliament, Wellington, Ne...
Associated Press

New Zealand designates Proud Boys a terrorist organization

WELLINGTON, New Zealand (AP) — New Zealand’s government has declared that American far-right groups the Proud Boys and The Base are terrorist organizations. The two groups join 18 others including Islamic State that have been given an official terrorist designation, making it illegal in New Zealand to fund, recruit or participate in the groups, and […]
1 day ago
Rep. Liz Cheney, R-Wyo., vice chair of the House Select Committee investigating the Jan. 6 U.S. Cap...
Associated Press

Cheney to debate Wyoming GOP foes after Jan. 6 hearings

CHEYENNE, Wyo. (AP) — Liz Cheney is returning to Wyoming after a busy week of hearing public testimony before the House Jan. 6 committee to debate Republican primary challengers including Harriet Hageman, her Donald Trump-endorsed opponent. Cheney will likely draw criticism in Thursday’s televised debate for investigating the former president’s effort to overturn the 2020 […]
1 day ago
Follow @ktar923...
Sponsored Content by Arizona Department of Health Services

Great news: Children under 5 can now get COVID-19 vaccine

After more than two years of battle with an invisible killer, we can now vaccinate the youngest among us against COVID-19. This is great news.

Sponsored Articles

...
Carla Berg, MHS, Deputy Director, Public Health Services, Arizona Department of Health Services

Vaccines are safe if you are pregnant or breastfeeding

Are you pregnant? Do you have a friend or loved one who’s expecting?
...
Carla Berg, MHS, Deputy Director, Public Health Services, Arizona Department of Health Services

Update your child’s vaccines before kindergarten

So, your little one starts kindergarten soon. How exciting! You still have a few months before the school year starts, so now’s the time to make sure students-to-be have the vaccines needed to stay safe as they head into a new chapter of life.
...
Day & Night Air

Tips to lower your energy bill in the Arizona heat

Does your summer electric bill make you groan? Are you looking for effective ways to reduce your bill?
US mortgage rates rise; 30-year at 5.27%, highest since 2009