T
he US long-term mortgage rate has continued its upward trend, reaching its highest level since July. The benchmark 30-year fixed rate loan rate rose to 6.93%, up from 6.91% last week, according to Freddie Mac. This marks the fourth consecutive week of increases.

    The surge in mortgage rates is linked to rising bond yields, specifically the yield on the 10-year Treasury, which has climbed from 3.62% in mid-September to 4.66%. As a result, homebuyers are facing higher costs at a time when housing prices are also increasing steadily.

    This perfect storm of elevated mortgage rates and rising home prices has made homeownership unaffordable for many would-be buyers. Despite a slight uptick in sales of previously occupied US homes in November, the housing market remains sluggish and on track for its worst year since 1995.

    The Federal Reserve's decision to slow down rate cuts is also contributing to the rise in mortgage rates. With inflation still above the central bank's 2% target, economists are concerned that President-elect Trump's economic policies could further fuel price increases.

    Meanwhile, the average rate on a 15-year fixed-rate mortgage has also ticked up to 6.14%, its highest level since July. This is likely to make refinancing less attractive for homeowners seeking to take advantage of lower rates.