(Bloomberg) -- Mortgage rates in the US rose for the second week in a row.
The average for a 30-year, fixed loan increased to 7.19% from 7.18% last week, Freddie Mac said in a statement Thursday. It’s the sixth straight week that the average rate has hovered above 7%.
Rising mortgage rates have squeezed affordability. The cost to finance a typical listed home has doubled in the past three years due to high rates and home prices, according to Realtor.com. Many owners have been reluctant to list their homes, making what is available more expensive.
“Given these high rates, housing demand is cooling off,” Sam Khater, Freddie Mac’s chief economist, said.
The yield on the 10-year Treasury rose Wednesday as the Federal Reserve left its benchmark interest rate unchanged. The central bank also signaled that borrowing costs will likely stay higher for longer.
Limited inventory has pressured sales. Transactions of previously owned properties dropped in August to the lowest since the start of the year, National Association of Realtors data showed.
Read More: US Existing-Home Sales Fall to Seven-Month Low on Rates, Supply
Deals are also falling through more often due in part to high borrowing costs. About 16% of purchases in August were canceled, the highest rate since October, according to Redfin Corp.
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