Mortgage Rates Reach Highest Level in Nearly a Year
Freddie Mac reported that mortgage rates climbed to their highest levels in almost 11 months, with the average rate on the benchmark 30-year fixed mortgage rising to 6.58% this week from 6.55% last week. This marks an increase compared to both a year ago and previous weeks. The 15-year fixed mortgage also saw its rate rise slightly to 5.96%. Freddie Mac's Chief Economist, Sam Khater, advised borrowers to shop around for better rates. The uptick in mortgage rates is influenced by factors such as the Federal Reserve’s monetary policy and geopolitical tensions, particularly between the U.S. and Iran. The 10-year Treasury yield rose slightly to 4.699%, which often correlates with mortgage rate movements. Despite elevated rates, experts suggest homebuyers focus on overall homeownership costs rather than speculative future rate changes. The housing market has seen some improvement in affordability as home price growth is expected to slow this year according to Realtor.com's updated forecast.
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Topics: Freddie Mac housing market interest rates