Ticker: Feds boost lead water line funds for Mass; Mortgage rates hit 5-month high

The Healey administration trumpeted Thursday that its lobbying had convinced the federal government to restore more than half of a cut to Massachusetts’ share of money to remove lead service lines from water systems, but said the feds still aren’t providing enough to meet the Bay State’s “unique needs.”

Massachusetts received $65.7 million through the federal Drinking Water State Revolving Fund Lead Service Line Grant in fiscal year 2022, but was only awarded $33.7 million for 2023 and future years of the program under a new U.S. Environmental Protection Agency methodology. On Thursday, the White House announced that Massachusetts’ grant share had been boosted to $50 million, which Gov. Maura Healey’s office said resulted from “advocacy from Massachusetts and other states.”

Mortgage rates hit 5-month high

The average rate on a 30-year mortgage climbed this week to its highest level in more than five months, pushing up borrowing costs for prospective homebuyers in what’s typically the housing market’s busiest stretch of the year.

The rate rose to 7.22% from 7.17% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.39%.

The average rate on a 30-year mortgage has now increased five weeks in a row. It hasn’t been this high since November 30.

In its latest statement, the Federal Reserve said it doesn’t plan to cut interest rates until it has “greater confidence” that inflation has slowed sustainably to its 2% target.

“Recent data reflects a surprisingly resilient economy, which means rate cuts expectations have pushed out further into the back half of the year,” said Hannah Jones, senior economic research analyst at Realtor.com.

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