Home Blog Uncategorized US Mortgage Rates Hit Four-Month High, Signaling Potential Challenges for Housing Market Recovery
US Mortgage Rates Hit Four-Month High, Signaling Potential Challenges for Housing Market Recovery

US Mortgage Rates Hit Four-Month High, Signaling Potential Challenges for Housing Market Recovery

US mortgage rates reached a four-month high last week, with the 30-year fixed mortgage rate climbing to 7.13% and the effective rate, including fees and compound interest, rising to 7.32%, according to Mortgage Bankers Association data. Despite the increase in rates, purchase activity stabilized, with the index of mortgage applications for home purchases rising 5%, marking the first gain in five weeks.

The rise in mortgage rates is influenced by the 10-year Treasury yield, which is at its highest level since November, prompting concerns of further increases in mortgage rates. Federal Reserve Chair Jerome Powell’s comments suggest that persistent inflation will delay the central bank’s ability to lower its benchmark interest rate, likely keeping mortgage rates elevated and moderating housing demand.

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2023