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Average US long-term mortgage rate climbs to 6.51%, highest level in nearly nine months
Bond-market turmoil tied to the war in Iran pushed mortgage costs higher as the spring homebuying season began, Freddie Mac said.
- Freddie Mac reported 30-year mortgage rates rose to 6.51% this week, reaching their highest level in about nine months. Rates remain lower than the 6.86% average seen one year ago.
- Turmoil in the Treasury bond market, fueled by the war in Iran, sent yields sharply higher this week. Investors grew worried that rising oil prices and Middle East conflict could cause persistently higher inflation.
- Prices rose 3.8% in April, the highest level since May 2023, according to the Consumer Price Index. For the first time in three years, Americans' wages did not outpace inflation.
- Economic anxiety stemming from the Middle East conflict is dampening homebuying activity. Existing home sales rose just 0.2% recently, following a 3.6% decline the prior period, according to the National Association of Realtors.
- High mortgage rates and uncertainty create barriers to home ownership despite Federal Reserve interest rate cuts. Brad Case, chief economist at Homes, said people are missing a "firm foundation" to make major decisions.
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Housing Market Faces Pressure As Mortgage Costs Climb
The U.S. mortgage rates climbed this week to their highest level in nine months as turbulence in the bond market and fears of inflation linked to the Iran conflict pushed borrowing costs higher, according to CNN and Freddie Mac. The average 30-year fixed mortgage rate rose to 6.51%, the highest level since August last year. Mortgage rates typically follow movements in the 10-year Treasury yield, which surged as investors reacted to rising oil pr…
Associated Press News+6 Reposted by 6 other sources
Average US long-term mortgage rate climbs to 6.51%, highest level in nearly nine months
The average long-term U.S. mortgage rate climbed this week to its highest level in nearly nine months, driving up borrowing costs for homebuyers during what’s traditionally the housing market’s busiest time of the year.
·United States
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Coverage Details
Total News Sources21
Leaning Left4Leaning Right1Center13Last UpdatedBias Distribution72% Center
Bias Distribution
- 72% of the sources are Center
72% Center
L 22%
C 72%
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