Mortgage rates rise to one-month high, weighing on homebuying

Mortgage rates climbed to their highest level in a month last week, pushing some buyers—especially firsttime and lowerprice shoppers—out of the market, according to the Mortgage Bankers Association. The average rate on a 30year fixed mortgage rose to 6.45% from 6.37%. Total mortgage applications fell 4.4% from the prior week, while applications to buy a home slipped 4%. Refinance activity also weakened, falling 5% for the week. The MBA said ongoing conflict in the Middle East has helped drive rates higher, and the housing market continues to face affordability pressure. The average purchase loan size reached a survey record of $467,300, which may indicate that lowerincome and firsttime buyers are delaying purchases. Mortgage rates moved even higher at the start of this week, with the next major market driver expected to be Friday’s U.S. jobs report.