Source: Fortune.com
Summary
The average long-term U.S. mortgage rate rose to 6.52% from 6.48% last week, according to Freddie Mac. The rate remains below its high for the year but above pre-war levels. The increase in mortgage rates is influenced by factors such as the Federal Reserve’s interest rate policy decisions, bond market investors’ expectations, and the trajectory of the 10-year Treasury yield. The war with Iran has disrupted oil prices, driving up inflation and keeping long-term bond yields elevated.
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The numbers tell one story.
Mortgage rates are trending higher, with the average 30-year fixed rate mortgage rate rising to 6.52%. The 15-year fixed-rate mortgage rate also increased to 5.84%. The yield on the U.S. 10-year Treasury note is up to 4.53%. Homebuyers are feeling the pressure, with sales of previously occupied U.S. homes declining in the first quarter. Despite this, mortgage applications jumped 10.8% last week, suggesting that some home shoppers are not waiting for rates to move lower. As Jiayi Xu, an economist at Realtor.com, notes, “if inflation continues to outpace wage growth, household budgets will come under increasing pressure.”
The housing market is holding its breath.
Author: Evan Null
