30-year mortgage rate rises to 6.66% as bond yields climb
The average rate on a 30-year fixed mortgage increased to 6.66% this week, near its yearly peak, while 15-year rates also edged higher.
The benchmark 30-year fixed mortgage rate in the United States rose to 6.66% from 6.65% the previous week, according to data from Freddie Mac. The level is close to the 6.69% high recorded earlier this month and matches the rate seen four weeks ago. A year earlier, the average was 6.56%.
The average rate on 15-year fixed mortgages also climbed, reaching 5.98% after a previous 5.95%; it was 5.69% a year ago. Higher borrowing costs can add several hundred dollars to monthly payments, potentially reducing homebuyers’ purchasing power and contributing to the slowdown in home sales.
Mortgage rates are tied to broader economic factors, including inflation trends, Federal Reserve policy decisions and investor expectations for the 10-year Treasury yield, which stood at 4.66% on Thursday. The yield has risen from about 3.97% in late February, reflecting market reactions to geopolitical tensions and concerns about U.S. fiscal conditions.
Analysts note that the increase in long-term bond yields, driven in part by higher oil prices and worries over the national debt, has pushed mortgage rates upward, although recent Treasury interventions may have limited impact.