US Mortgage Rates Hit One-Year High Amid Inflation Fears

The average 30-year US mortgage rate rose to its highest level in a year at 6.66%, according to Freddie Mac. This marks the fourth consecutive week of increases, with the benchmark 30-year fixed-rate mortgage rate rising from 6.58% last week.

This higher rate adds hundreds of dollars to borrowers' monthly costs and limits homebuyers' purchasing power. As a result, prospective buyers may delay buying a home, contributing to sluggish US home sales this year.

The rise in mortgage rates is linked to 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 also risen.