Average 30-year mortgage rate inches up to 4.52 per cent

WASHINGTON – Long-term U.S. mortgage rates ticked up this week as borrowing costs are meaningfully higher than a year ago.

Mortgage buyer Freddie Mac said Thursday that the average rate on 30-year, fixed-rate mortgages rose slightly to 4.52 per cent from 4.51 per cent last week. The rate averaged 3.82 per cent a year ago. Average rates began to climb after the tax cuts signed into law last year by President Donald Trump increased the federal budget deficit, as home loans generally move in sync with interest on 10-year Treasury notes.

The average rate on 15-year, fixed-rate loans fell to 3.97 per cent this week from 3.98 per cent last week.

Because of rising home prices and borrowing costs, affordability has become a challenge for many would-be homebuyers and depressed sales of existing homes for the past four months.

An analysis released Thursday by realtor.com found that the monthly costs of owning a home have climbed 14 per cent in the past year. As a result, the median monthly cost to buy a home was $1,647, almost $400 more than the average monthly cost to rent a home.