US Mortgage Rates Hit Highest Level in a Year
The average 30-year fixed-rate mortgage rate in the US has risen to its highest level in a year, reaching 6.66% according to Freddie Mac. This marks the fourth consecutive week of increases and is a setback for prospective homebuyers who have been hoping for lower borrowing costs.
Higher mortgage rates can add hundreds of dollars to monthly payments, limiting homebuyers' purchasing power and leading some to delay buying a home. As a result, US home sales have been sluggish this year.
The increase in mortgage rates is influenced by several factors, including the Federal Reserve's interest rate policy decisions and bond market investors' expectations for the economy and inflation. The 10-year Treasury yield, which lenders use as a guide to pricing home loans, has risen to 4.66%.