Freddie Mac data shows a weekly decline in benchmark mortgage rates, easing pressure on homebuyers amid elevated Treasury yields.
The average 30-year fixed mortgage rate in the US fell to 6.48% this week, down from 6.53% last week, marking its first decline after reaching a nine-month high. The drop provides temporary relief for homebuyers facing affordability challenges amid persistent inflation and rising bond yields.
Rates remain below last year’s 6.85% but have trended upward since late February, driven by geopolitical tensions and higher oil prices. The 10-year Treasury yield, a key benchmark for mortgage pricing, rose to 4.47% Thursday, up from 3.97% before the conflict in the Middle East escalated.
Mortgage rates typically follow Treasury yields, which have been elevated due to expectations of prolonged inflation and tighter monetary policy. The recent decline in rates may modestly improve housing market sentiment, though affordability constraints persist.