U.S. Mortgage Rates Surge to the Highest Level in More than Two Years

Mortgage rates in the U.S. jumped to the highest level since January 2020, before the pandemic rocked financial markets.

The average for a 30-year loan was 3.69%, up from 3.55% last week, Freddie Mac said in a statement Thursday. That was the highest since Jan. 2, 2020, when rates averaged 3.72%.

Borrowing costs resumed their upward climb after holding relatively steady for about a month. They tracked a surge in yields for 10-year Treasuries, which are approaching 2%. Stubbornly high inflation and an unexpectedly strong jobs report for January are likely to clear the way for the Federal Reserve to lift interest rates, which may make mortgages more expensive.