US mortgage rates rise to highest level since mid-December last year

US mortgage rates rose to their highest level since mid-December last year as the housing market enters the crucial spring selling season. Freddie Mac said the average rate for a 30-year fixed-rate mortgage was 6.77 per cent, up from 6.64 per cent last week. Benchmark U.S. Treasury yields spiked this week after a higher-than-expected inflation report caused traders to delay bets on the timing of a Federal Reserve rate cut.

The prospect of borrowing costs remaining high for an extended period could keep buyers and sellers on the sidelines during the housing market's busiest season. Many existing homeowners have mortgages with rates below 4 per cent, discouraging them from listing their properties for more expensive loans. This has led to a severe shortage in the supply of listings, especially for more affordable homes.