Most popular US homeloan rate is up 60 basis points since Fed39;s Sept rate cut
Rise in mortgage rate tied to stronger economic data, bets on Trump White House win
Previous decline in mortgage rates had fueled burst of interest in homebuying

Oct 30 Reuters The interest rate for the most popular U.S. home loan jumped last week to 6.73, its highest since July, adding to headwinds for the housing market even as the Federal Reserve looks set to further lower its target for shortterm borrowing costs.

The average contract rate on a 30year fixedrate mortgage rose 21 basis points in the week ended Oct. 25, the Mortgage Bankers Association said on Wednesday.

The main homeloan rate is now 60 basis points above where it was immediately after the Fed39;s midSeptember meeting, when the central bank made an initial half percentage point cut to the policy interest rate and signaled more reductions to come.

Mortgage rates had been falling on anticipation of the Fed39;s move, pumping new life into the housing market. Contracts to buy previously owned homes jumped by the most in four years in September, the National Association of Realtors reported on Wednesday. Pending sales turn into actual sales a month or two later.

But almost immediately after the Fed39;s September meeting, home loan rates began climbing again, as strongerthanexpected data including a jump in spending and big job gains allayed concerns about a recession and fueled expectations that the Fed would cut rates more…