U.S. 30-Year Mortgage Rate Jumps 12 Basis Points to 7.30%

The average U.S. rate on a 30-year fixed mortgage rose 12 basis points (0.12 percentage point) to 7.30% Tuesday, ending four weeks of declines after an inflation report showed broad price pressure and raising borrowing costs for homebuyers.

The increase was the largest one-day jump in more than a month. The monthly consumer price index report showed pressure across prices, not only in fuel-related categories. Friday’s employment report had also suggested the economy was running hotter than analysts had forecast.

A separate weekly average for 30-year fixed loans was 7.21% last week, down from 7.30% the prior week for borrowers making a 20% down payment. That weekly measure recorded a fourth consecutive decline and its lowest reading since mid-September.

Mortgage applications rose 6.2% last week from the prior week. Purchase applications gained 8% week over week but were 18% below the same week a year earlier. Refinance applications increased 5% from the prior week and remained 57% lower than a year earlier.