Freddie Mac reports a 15-basis-point weekly rise in the benchmark mortgage rate, pressuring homebuyer affordability during peak season.
The average 30-year fixed mortgage rate in the US rose to 6.51% this week, up from 6.36% last week, reaching its highest level since August. The increase marks a 15-basis-point jump, driven by higher long-term bond yields amid inflation concerns and geopolitical tensions in energy markets.
Rates remain below last year’s 6.86% but have trended upward since crude oil prices surged following disruptions in the Strait of Hormuz. Rising government debt expectations and persistent inflation worries have also contributed to the climb, impacting borrowing costs during the spring homebuying season.
The move follows a period of volatility in bond markets, with investors pricing in sustained inflationary pressures. Despite the rise, demand for housing remains resilient, though affordability constraints may weigh on activity in coming months.