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US fixed 30-year mortgage rate jumps to 7.12%, MBA says
Yahoo Finance • • business
Key Points:
- The average 30-year fixed-rate mortgage in the US rose to 7.12% last week, the highest level since May 2024, driven by the Federal Reserve's interest rate hikes and rising oil prices.
- Mortgage rates have increased by over one percentage point since late February, influenced by geopolitical tensions and higher oil prices impacting Treasury yields and inflation expectations.
- The Federal Reserve raised its policy rate to a 3.75%-4.00% range, signaling potential additional hikes to curb inflation, which has remained above the 2% target for over five years.
- Higher mortgage rates led to a decrease in refinancing and home purchase applications, with more borrowers opting for adjustable-rate mortgages that offer lower initial costs but variable future rates.
