AI Generated Image
Average rate on 30-year mortgage hits 6.66% this week
AP News • • business
Key Points:
- The average 30-year fixed mortgage rate in the U.S. increased slightly to 6.66% this week, nearing the year's recent high of 6.69%, according to Freddie Mac.
- Higher mortgage rates are raising monthly borrowing costs, reducing homebuyers' purchasing power and contributing to sluggish home sales this year.
- The average rate on 15-year fixed mortgages also rose to 5.98%, up from 5.95% last week and above last year's 5.69%.
- Mortgage rates are influenced by inflation, Federal Reserve policies, and bond market trends, particularly the 10-year Treasury yield, which has risen due to geopolitical tensions and concerns over U.S. government debt.
- The 10-year Treasury yield climbed to 4.66% from 3.97% before the U.S.-Iran conflict in late February, driving mortgage rates higher amid expectations of increased inflation.
