US Long-Term Mortgage Rates Ease to 6.37% After Five-Week Rise
The average long-term U.S. mortgage rate declined to 6.37% this week, offering slight relief to homebuyers after rising for five consecutive weeks to reach a nearly seven-month high. According to Freddie Mac, the benchmark 30-year fixed rate dropped from 6.46% the previous week and stands lower than the 6.62% average recorded one year ago. Similarly, the 15-year fixed-rate mortgage average decreased to 5.74% from 5.77%. This recent downward shift follows a period of volatility driven by geopolitical tensions, specifically the war with Iran, which surged oil prices and heightened inflation expectations. These factors previously pushed up yields on 10-year U.S. Treasury bonds, a key indicator for mortgage pricing. While rates have eased slightly, the housing market remains sluggish, with sales of previously occupied homes near 30-year lows. The Federal Reserve’s interest rate policies and bond market reactions to economic data continue to influence borrowing costs. Analysts warn that further rate increases could dampen home sales during the critical spring buying season, as higher costs limit affordability for prospective buyers amidst an ongoing market slump that began in 2022.
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US Long-Term Mortgage Rates Ease to 6.37% After Five-Week Rise
The average long-term U.S. mortgage rate declined to 6.37% this week, offering slight relief to homebuyers after rising for five consecutive weeks to reach a nearly seven-month high. According to Freddie Mac, the benchmark 30-year fixed rate dropped from 6.46% the previous week and stands lower than the 6.62% average recorded one year ago. Similarly, the 15-year fixed-rate mortgage average decreased to 5.74% from 5.77%. This recent downward shift follows a period of volatility driven by geopolitical tensions, specifically the war with Iran, which surged oil prices and heightened inflation expectations. These factors previously pushed up yields on 10-year U.S. Treasury bonds, a key indicator for mortgage pricing. While rates have eased slightly, the housing market remains sluggish, with sales of previously occupied homes near 30-year lows. The Federal Reserve’s interest rate policies and bond market reactions to economic data continue to influence borrowing costs. Analysts warn that further rate increases could dampen home sales during the critical spring buying season, as higher costs limit affordability for prospective buyers amidst an ongoing market slump that began in 2022.
AP News