The average 30-year fixed mortgage rate has risen to 6.66 percent, adding financial strain on prospective homebuyers.
| PULSE POINTS |
❓ WHAT HAPPENED: The average rate on a 30-year fixed U.S. mortgage has climbed for the fourth consecutive week, reaching its highest level in a year and adding another challenge for prospective homebuyers facing elevated borrowing costs. Mortgage buyer Freddie Mac reported Thursday that the benchmark rate increased to 6.66 percent from 6.58 percent last week, compared with 6.72 percent a year ago. 📺 DETAIL: The average rate on a 15-year fixed mortgage, commonly used for refinancing, also rose to 6.04 percent from 5.96 percent the previous week, up from 5.85 percent one year ago. Higher mortgage rates can add hundreds of dollars to monthly payments, reducing buyers’ purchasing power. Mortgage rates are influenced by factors including Federal Reserve policy, inflation expectations, and movements in the bond market, particularly the 10-year Treasury yield. Rates have generally trended higher this year as the Iran war has pushed crude oil prices higher, increasing concerns about inflation and driving long-term bond yields upward. The 10-year Treasury yield stood at 4.66 percent Thursday, up from 3.97 percent in late February before the conflict began. 🎯 IMPACT: Higher mortgage rates are adding substantially increasing monthly costs for borrowers, driving down purchasing power and discouraging prospective homebuyers. This trend has contributed to sluggish home sales in the U.S. as affordability challenges continue. |
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