Buying a home just got more expensive.
The 30-year fixed rate mortgage ticked up to 6.49% this week, according to Freddie Mac
After peaking at around 7.8% in late 2023, the primary mortgage rate had been drifting lower in recent years, in fits and starts. It dropped just below 6% in February of this year, the first time it was below that level since 2022. Since then, the borrowing rate has been rising again.
While the Federal Reserve sets very short-term interest rates, mortgage rates tend to follow the yield on the 10-year Treasury. That yield has been rising all year and jumped dramatically in July as ongoing fighting in the Persian Gulf threatens to send oil prices higher again, and inflation with them. That’s bad news for both homebuyers and homebuilders, as it makes homes even less affordable.