Mortgage Rates Soar to Nearly Yearly High as US Housing Market Faces Pressure

US mortgage rates have reached their highest level in nearly a year, making home loans costlier for prospective buyers. The average 30-year fixed loan rate has climbed to 6.58%, driven by inflation, Federal Reserve policies, and rising oil prices. This surge is impacting affordability and potentially slowing down home sales.

The average interest rate on a 30-year fixed mortgage increased from 6.55% to 6.58% this week, according to Freddie Mac, a finance company. Although the rate remains slightly below the 6.74% recorded a year ago, it is now at its highest level since August last year.

The average rate on a 15-year fixed mortgage also rose to 5.96%, up from 5.93% last week. Higher borrowing costs may slow down home sales as many first-time buyers and families choose to postpone purchasing a house until borrowing becomes more affordable.