Mortgage rates climbed to the highest level in three months.
The average rate on the standard 30-year fixed mortgage rose to 6.86%, according to a survey of lenders by mortgage-finance giant Freddie Mac. It was 6.81% a week earlier.
A shaky bond market has sent yields higher, with investors concerned about inflation, the government budget deficit and a recent U.S. credit downgrade by Moody’s. Mortgage rates tend to loosely follow the 10-year Treasury yield.
