Fixed-rate mortgages rose for a fifth straight week, rising to their highest levels since early May, according to Freddie Mac’s weekly survey of home loan interest rates.

The 30-year loan was almost back to this year’s high hit in April, marking the end of a summer-long slide to the lowest rates in at least four decades. Rates still are well below historical averages nonetheless.

“Market concerns over stronger economic growth that, in the near term, could lead to an increase in inflation have sparked a rise in bond yields and mortgage rates have followed,” Freddie Mac Chief Economist Frank Nothaft said in the agency’s weekly statement.

The Associated Press reported:

“Investors are shifting money out of Treasurys and into stocks. That’s largely on the expectation that the tax-cut plan that Congress is set to approve will spur growth and potentially higher inflation.

“Yields tend to rise on fears of higher inflation. Mortgage rates track the yields on the 10-year Treasury note.

” … The increase in rates already is chilling the housing market. Refinance activity fell last week for the fifth straight week, while the number of people applying for a mortgage to purchase a home dropped 5 percent from the previous week, the Mortgage Bankers Association said.”

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