The average rate on a 30-year fixed mortgage has climbed for the fourth consecutive week, reaching its highest level in a year and adding significant financial strain on prospective homebuyers.
Freddie Mac reported Thursday that the benchmark rate increased to 6.66 percent from 6.58 percent last week, compared with 6.72 percent a year ago.
The average rate for a 15-year fixed mortgage—commonly used for refinancing—rose to 6.04 percent from 5.96 percent the previous week, up from 5.85 percent one year ago. Higher mortgage rates can add hundreds of dollars to monthly payments, reducing buyers’ purchasing power.
Mortgage rates are influenced by factors including Federal Reserve policy, inflation expectations, and movements in the bond market, particularly the 10-year Treasury yield. Rates have trended higher this year as the Iran war has pushed crude oil prices higher, increasing concerns about inflation and driving long-term bond yields upward. The 10-year Treasury yield stood at 4.66 percent Thursday, up from 3.97 percent in late February.
Higher mortgage rates are adding substantial monthly costs for borrowers, driving down purchasing power and discouraging prospective homebuyers. This trend has contributed to sluggish home sales across the United States as affordability challenges persist.
