The average interest rate on the most popular U.S. home loan rose to its highest level since June 2009 last week and demand for mortgages ebbed as the impact of rising costs began to bite, Mortgage Bankers Association (MBA) data showed on Wednesday.
The average contract rate on a 30-year fixed-rate mortgage increased to 5.37 percent in the week ended April 22 from 5.20 percent a week earlier, the MBA survey showed.
It has risen 220 basis points from 12 months ago, with most of the rise since the turn of the year as financial markets have reacted to the U.S. Federal Reserve’s plans to raise interest rates more swiftly to combat high inflation.
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