(Bloomberg) -- U.S. mortgage rates continued their upward climb. 

The 30-year average rose to 3.14%, the highest since April 1 and up from 3.09% last week, Freddie Mac said Thursday. 

Rates increased along with yields for 10-year Treasuries, which touched an almost seven-month high late last week before dropping more recently. Signs point to borrowing costs climbing further as the Federal Reserve prepares to scale back its bond purchases and possibly consider raising its benchmark rate if the economy hits certain targets.

Higher mortgage rates cut into purchasing power for Americans who may already be stretching to afford a home. Still, more owners are listing their properties, which may provide some relief from the brutal bidding wars many buyers faced this year.

With the latest increase, the monthly payment on a $300,000 mortgage would be $1,288. That’s up from $1,209 when rates hit a record low of 2.65% in January.  

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