The average long-term U.S. mortgage rate jumped this week to its highest level in 20 years, grim news for would-be homebuyers already facing high home prices caused a lack of supply.

Mortgage buyer Freddie Mac said Thursday that the average rate on the benchmark 30-year home loan jumped to 7.09% from 6.96% last week. That’s the highest since April of 2002, when the average rate clocked in at 7.13%.

The average long-term rate hit 7.08% in late October and again in early November.

One year ago, the rate averaged 5.13%.

�The economy continues to do better than expected and the 10-year Treasury yield has moved up, causing mortgage rates to climb,� said Sam Khater, Freddie Mac�s chief economist. �Demand has been impacted by affordability headwinds, but low inventory remains the root cause of stalling home sales.�

The average rate on a 30-year mortgage remains more than double what it was two years ago, when it was just 2.86%. Those ultra-low rates spurred a wave of home sales and refinancing. The sharply higher rates now are contributing to a dearth of available homes, as homeowners who locked in those lower borrowing costs two years ago are now reluctant to sell and jump into a higher rate on a new property.

The average rate on 15-year fixed-rate mortgages, popular with those refinancing their homes, climbed to 6.46% from 6.34% last week. A year ago, it averaged 4.55%, Freddie Mac said.

(AP)