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Average rate on a 30-year mortgage climbs to highest level in 13 months
AP News • • business
Key Points:
- The average 30-year fixed mortgage rate in the U.S. rose to 6.71%, its highest level in over a year, driven by rising inflation concerns and geopolitical tensions.
- Higher mortgage rates increase borrowing costs, reducing homebuyers' purchasing power and contributing to sluggish U.S. home sales this year.
- The 15-year fixed mortgage rate also increased to 6.04%, reflecting broader upward pressure on borrowing costs amid inflation and bond market trends.
- Factors influencing mortgage rates include inflation, Federal Reserve policy decisions, and the 10-year Treasury yield, which has risen due to the U.S.-Iran conflict and concerns over U.S. government debt.
- The Federal Reserve is expected to raise interest rates later this year to combat persistent inflation, which could keep mortgage rates elevated and further impact housing affordability.
