OTHER DEVELOPMENTS Long-term mortgage rates rise again; 30-year breaches 4.5%

Average long-term U.S. mortgage rates rose again this week as the key 30-year loan rate vaulted over 4.5% and attained its highest level since the end of 2018.

Against a backdrop of inflation at a four-decade high, the increases in home loan rates come a few weeks after the Federal Reserve raised by a quarter point its benchmark short-term interest rate — which it had kept near zero since the pandemic recession struck two years ago — to cool the economy. The central bank has signaled potentially up to seven additional rate hikes this year.

The developments mean that mortgage rates likely will continue to rise over the year.

Mortgage buyer Freddie Mac reported Thursday that the average rate on the 30-year loan this week rose to 4.67% from 4.42% last week. That’s a sharp contrast from last year’s record-low mortgage rates of around 3%. A year ago, the 30-year rate stood at 3.18%.

The average rate on 15-year, fixedrate mortgages, popular among those refinancing their homes, jumped to 3.83% from 3.63% last week.

Home prices are up about 15% over the past year and as much as 30% in some cities. Homes available for sale have been in short supply even before the pandemic started two years ago. Now higher prices and rising loan rates will make it even harder for wouldbe buyers as the spring homebuying season gets underway.

More Americans apply for jobless benefits; layoffs still low

More Americans applied for unemployment benefits last week, but layoffs remain at historic lows.

Jobless claims rose by 14,000 to 202,000 for the week ending March 26, the Labor Department reported Thursday. The previous week’s tally of 188,000 claims was the fewest since 1969. First-time applications for jobless aid generally track the pace of layoffs.

The four-week average for claims, which compensates for weekly volatility, fell to 208,500 from 212,000 the previous week.

In total, 1,307,000 Americans were collecting jobless aid for the week ending March 19, the fewest since December 1969.