Freddie Mac: The average 30-year fixed mortgage rate falls to 6.48%
AP News • • business
Key Points:
- The average 30-year fixed U.S. mortgage rate eased to 6.48% this week from 6.53% last week, providing some relief to prospective homebuyers, though rates remain below last year's 6.85%.
- Mortgage rates have generally trended higher since the war in Iran began, driven by rising oil prices that fuel inflation fears and keep long-term bond yields elevated.
- The 10-year Treasury yield, a key benchmark for mortgage rates, rose to 4.47% this week, up from 3.97% in late February before the conflict started, contributing to higher borrowing costs.
- Housing market activity remains sluggish, with flat home sales in April and declining mortgage applications over the past three weeks, reflecting buyer caution amid rate uncertainty.
- Despite higher rates, some homebuyers benefit from increased inventory and falling home listing prices, with the median price of U.S. homes for sale dropping 2.4% year-over-year in the latest data.