Interest rates rise for mortgages, credit cards and car loans

Washington — Long-term average mortgage rates in the United States resumed their climb this week, as 30-year loans hit their highest point since 2009.

The increases came after the Federal Reserve Bank raised its benchmark interest rate by half a percentage point as a measure to combat the worst inflation in 40 years in the country. The Fed also signaled that big rate hikes are coming soon.

This measure, the most aggressive since 2000, will lead to higher costs for mortgages, as well as for credit cards, car loans and other personal and business loans.

Mortgage firm Freddie Mac reported Thursday that the 30-year rate rose to 5.27%, compared with 5.1% last week.

The average rate on 15-year fixed-rate mortgages, popular with home refinancers, jumped to 4.52% from 4.4% the previous week.

With inflation at a four-decade high, rising mortgage rates, soaring home prices, and a limited supply of homes for sale, homeownership has become less attainable, especially for first-time buyers.

Some economists suggest home sales this year could decline as much as 10% from 2021 levels.