Mortgage Rates Hit Two-Year High, Pressuring Homebuyers

The average 30-year fixed mortgage rate has reached a two-year high of 7.111%, according to Mortgage Research Center data, putting pressure on US homebuyers.

This is a significant increase from the previous week's average of 7.053% and marks the highest weekly level since May 2024, with the 30-year rate having last been above 7% in January 2025.

The climb this year has come as Treasury yields have risen due to concerns over inflation and energy prices in financial markets.

The Federal Reserve's decision to raise its policy rate by a quarter percentage point last week, taking its target range to 3.75%-4%, has also contributed to the increase in mortgage rates.