(Bloomberg) -- Mortgage rates in the U.S. continued to climb.
The average for a 30-year loan was 3.09%, up from 3.05% last week and the highest since April 8, Freddie Mac said in a statement Thursday.
While still historically low, mortgage rates have crept up in recent weeks. Higher borrowing costs could cut into purchasing power for potential homebuyers scouring a real estate market that has run hot for more than a year.
Read more: U.S. Housing Starts Fell Last Month, Led by Multifamily Slowdown
A shortage of listings has fueled bidding wars and driven up prices during the pandemic. While more homeowners have decided to put their properties on the market, shortages of materials and labor have held back new construction.
“Even as the availability of existing homes is improving, prices remain high due to homebuyer demand and limitations on housing starts,” said Sam Khater, Freddie Mac's chief economist. “Despite these countervailing forces, we expect the housing market to remain strong as we head into the end of the year.”
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