U.S. 30-Year Mortgage Rate Reaches One-Year High of 6.66%
The U.S. 30-year fixed-rate mortgage reached a one-year high of 6.66% for the week ending July 30, according to Freddie Mac. This marks an increase from 6.58% in the previous week and is slightly below last year's rate of 6.72%. The 15-year fixed-rate also rose to 6.04%, up from 5.96% a week earlier. The rise in mortgage rates has been attributed to higher oil prices and persistent inflation linked to the U.S.-Israel conflict with Iran, which have pushed Treasury yields upward. Recent data showed a slight decline in annual inflation to 3.7%, but it remains above the Federal Reserve's target of 2%. The Fed maintained its benchmark interest rate unchanged this week. Higher mortgage rates are dampening borrower activity, as overall application volume dropped by 6.4% compared to last week, with refinance applications falling even more sharply at 10%. Analysts suggest that energy prices and inflation will need to stabilize before significant declines in mortgage rates can occur.
Tickers: $FMCC
Topics: housing market inflation mortgage rates