The average long-term U.S. mortgage rate rose for the fourth consecutive week to its highest level in a year, another setback for prospective homebuyers hoping for a break from elevated home loan borrowing costs. This was reported by Qazaqyia.kz citing Associated Press.
The benchmark 30-year fixed rate mortgage rate rose to 6.66% from 6.58% last week, mortgage buyer Freddie Mac said Thursday. One year ago, the average rate was 6.72%. Borrowing costs on 15-year fixed-rate mortgages also rose to 6.04% from 5.96% last week, compared to 5.85% a year ago.
Mortgage rates are influenced by several factors, including the Federal Reserve's interest rate policy and bond market expectations. The conflict in Iran has driven crude oil prices sharply higher, fueling expectations of hotter inflation. The 10-year Treasury yield was 4.66% at midday Thursday, up from 3.97% in late February. The average rate on a 30-year mortgage is now the highest it's been since July 31, 2025.
The Federal Reserve left its key interest rate unchanged on Wednesday. Higher mortgage rates have weighed on home sales, with sales of previously occupied U.S. homes hovering close to a 4-million annual pace, far short of the historic norm of 5.2 million.