Average long-term US mortgage rate back above 7% this week

By MATT OTT
AP Business Writer

WASHINGTON (AP) — The average long-term U.S. mortgage rate returned to the 20-year highs of two weeks ago when rates breached 7% for the first time since 2002. Mortgage buyer Freddie Mac reported Thursday that the average on the key 30-year rate rose to 7.08% from 6.95% last week. Last week, the Federal Reserve raised its short-term lending rate by another 0.75 percentage points, three times its usual margin, for a fourth time this year as part of its inflation-fighting strategy. Thursday’s report raised the possibility that the Fed could slow its rate hikes, a prospect that sent stock prices jumping.