Freddie Mac says the average 30-year mortgage climbed to 6.37%, with 15-year rates also moving higher amid bond-market volatility and oil-driven inflation worries.
Source: Original report
Weekly snapshot
Freddie Mac reported another uptick in long-term mortgage costs this week. The average 30-year fixed mortgage rose to 6.37% from 6.30% a week earlier, returning to the level seen about a month ago. The average 15-year fixed rate climbed to 5.72% from 5.64% the prior week.
Why rates are moving up
Analysts point to volatility in the bond market and renewed inflation concerns as the main drivers. Rising oil prices tied to the conflict with Iran have added pressure on inflation expectations, which in turn pushes yields higher across the Treasury curve.
The 10-year Treasury yield — a key benchmark lenders consult when setting mortgage pricing — was trading near 4.37% at midday Thursday. That compares with roughly 3.97% in late February, before the conflict began affecting market sentiment.
Context and comparisons
- 30-year fixed: 6.37% this week; 6.30% last week; 6.76% one year ago.
- 15-year fixed: 5.72% this week; 5.64% last week; 5.89% one year ago.
- 10-year Treasury yield: about 4.37% midday Thursday; about 3.97% in late February.
What lenders and borrowers should watch
Mortgage rates respond to a range of forces including Federal Reserve policy, investor expectations for growth and inflation, and movements in Treasury yields. This marks the second consecutive weekly increase in the average 30-year rate, reversing some of the declines seen earlier this spring.
Homeowners considering refinancing or prospective buyers tracking monthly payments should monitor bond-market trends and oil-price developments, which can quickly influence borrowing costs.
Data cited from Freddie Mac and U.S. Treasury market observations.
