Freddie Mac data shows borrowing costs on home loans rising for the week, pressuring affordability amid elevated inflation and bond yields.
The average 30-year fixed mortgage rate in the US increased to 6.52% this week, up from 6.48% last week, approaching its highest level of the year. The rise reflects persistent inflation pressures and elevated long-term bond yields, which have been driven higher by geopolitical tensions disrupting global oil supplies.
Mortgage rates remain below last year’s peak of 6.84% but have trended upward since late February, when conflict in the Middle East escalated. The 10-year Treasury yield, a key benchmark for home loan pricing, rose to 4.53% Thursday, up from 3.97% before the conflict began.
Higher rates add hundreds of dollars in monthly costs for borrowers, reducing purchasing power in an already tight housing market. The Federal Reserve’s interest rate policy and investor expectations for inflation continue to influence mortgage rate movements.