US Mortgage Rates Hit Highest Level This Year Amid Inflation Fears

The US mortgage rate for a 30-year fixed loan has reached its highest level this year at 6.81%, according to Mortgage News Daily's latest lender-based index on Friday, Aug. 28.

This marks a 4 basis point increase from the previous day and is just 4 basis points below its 52-week high of 6.85%. The 15-year fixed rate also climbed to its 52-week high at 6.35%.

The current mortgage rates are being influenced by Federal Reserve Chair Kevin Warsh's recent warning about inflation, which has caused bond yields to increase and led investors to expect tighter monetary policy from the Fed.

Warsh stated that 'price stability should be the Fed's predominant focus,' citing a 3.7% year-over-year increase in the preferred PCE inflation measure in July, above the central bank's 2% target.