Mortgage Rates Hit Highest Level in Over 14 Months

Mortgage rates have risen for the third consecutive week, pushing the average long-term US home loan rate to its highest level in over 14 months. The benchmark 30-year fixed rate mortgage has increased to 6.76% from 6.71% last week, according to Freddie Mac.

This increase can add hundreds of dollars a month in costs for borrowers, limiting their purchasing power and potentially leading to delayed homebuying decisions. As rates rise, the stagnant US housing market may experience further declines in sales.

The 10-year Treasury yield has also reached its highest level since late 2023, at 4.92%, with bond yields generally following the trajectory of this benchmark rate. The Federal Reserve's interest rate decisions and inflation concerns continue to influence mortgage rates, which are expected to remain high due to the ongoing war in Iran and growing US debt.