30-Year Mortgage Rates Climb To One-Year High

News Release

WASHINGTON, D.C. – The average rate on the 30-year fixed mortgage rose for the fourth consecutive week, reaching 6.66%, its highest level in a year and adding new pressure to an already sluggish housing market.

The average rate on a 15-year fixed mortgage, commonly used by homeowners refinancing existing loans, also increased to 6.04%.

Mortgage rates have climbed alongside the yield on the 10-year U.S. Treasury note, which has risen from 3.97% in late February to 4.66% as investors reassess inflation risks and the outlook for the economy. Inflation concerns have intensified following the conflict involving Iran, which has pushed oil prices higher and contributed to expectations of persistently elevated inflation.

The Federal Reserve left its benchmark interest rate unchanged this week, while divisions among policymakers over inflation have diminished expectations for near-term rate cuts.

Buyer demand also weakened in recent weeks, with mortgage applications falling 6.4% as higher borrowing costs and uncertainty over inflation continued to weigh on both homebuyers and homeowners seeking to refinance.

Increased mortgage rates have increased monthly payments for prospective buyers, reducing purchasing power and prompting many households to delay buying a home. Home sales have remained near an annual pace of 4 million transactions, well below historical norms.