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Average long-term US mortgage rate eases to 7.32% in first pullback since late August
ABC News - Breaking News, Latest News and Videos • • business
Key Points:
- Mortgage rates declined this week for the first time since late August, with the 30-year fixed-rate mortgage dropping to 7.32% from 7.40% last week, providing some relief to homebuyers facing higher borrowing costs.
- The 15-year fixed-rate mortgage also saw a slight decrease, falling to 6.68% from 6.71% last week, though rates remain significantly higher than a year ago.
- Mortgage rates are influenced by factors such as inflation, Federal Reserve policies, and bond market trends, particularly the 10-year Treasury yield, which has recently eased after reaching highs earlier this month.
- The recent rise in mortgage rates since late February has been driven by geopolitical tensions, including the U.S. war with Iran, which increased oil prices and inflation, contributing to bond market volatility and higher Treasury yields.
- Despite the recent easing, the 10-year Treasury yield remains elevated at around 5%, well above pre-conflict levels, keeping mortgage rates near their highest point in nearly three years.
