Average long-term US mortgage rate climbs above 7% to highest level since late November

By ALEX VEIGA
AP Business Writer

LOS ANGELES (AP) — Prospective homebuyers are facing higher costs to finance a home with the average long-term U.S. mortgage rate moving above 7% this week to its highest level in nearly five months. The average rate on a 30-year mortgage rose to 7.1% from 6.88% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.39%. When mortgage rates rise, they can add hundreds of dollars a month in costs for borrowers, limiting how much they can afford. Rates have been mostly drifting higher in recent weeks as stronger-than-expected reports on employment and inflation.