Business & Finance
US mortgage rates rise slightly, remaining near yearly high
The average rate on a benchmark 30-year fixed home loan ticked up to 6.66% this week as elevated bond yields continue to pressure the housing market.
The short version
- The average rate on a 30-year fixed mortgage edged up to 6.66% this week, matching its level from four weeks ago.
- Higher borrowing costs continue to limit purchasing power for prospective homebuyers, keeping US home sales in a slump.
- Mortgage rates remain elevated due to higher 10-year Treasury yields, which are being driven up by factors including geopolitical conflict and government debt concerns.
Key facts
- The average rate on a benchmark 30-year fixed-rate mortgage rose to 6.66% from 6.65% the previous week, according to Freddie Mac.[Associated Press]
- The average rate on a 15-year fixed-rate mortgage increased to 5.98% from 5.95% the previous week.[Associated Press]
- One year ago, the 30-year fixed rate averaged 6.56% and the 15-year average rate was 5.69%.[Associated Press]
- The 10-year Treasury yield stood at 4.66% as of midday Thursday, up from 3.97% in late February prior to the start of the U.S. war with Iran.[Associated Press]
- Sales of previously occupied U.S. homes were flat last year at a 30-year low, and sales slowed again in July.[Associated Press]
What remains uncertain
- Analysts suggest that recent interventions by the U.S. Treasury Department to address bond yields may have only a limited effect on stabilizing long-term rates.[Associated Press]