Freddie Mac data shows the average 30-year mortgage rate rose to 6.49%, pressuring homebuyer affordability amid higher bond yields.
The average 30-year fixed mortgage rate in the US rose to 6.49% this week, up from 6.43% last week, increasing borrowing costs for homebuyers. The move follows a brief dip below 6% in February and a subsequent climb to nine-month highs in May.
A year ago, the 30-year rate stood at 6.72%, while the 15-year fixed rate, popular for refinancing, increased to 5.82% from 5.79%. Higher mortgage rates have dampened home sales this year by reducing purchasing power for buyers.
Rates are closely tied to the 10-year Treasury yield, which reached 4.55% midday Thursday. Inflation concerns and rising crude oil prices have pushed bond yields higher, contributing to the upward trend in mortgage rates.