US mortgage rates have jumped to their highest level since early February, rising to 6.89%. This increase comes as borrowing costs for homebuyers continue to rise, with the average rate on a 30-year fixed-rate mortgage now above 7%.
The Federal Reserve’s interest rate policy decisions and bond market investors’ expectations for inflation are key factors influencing mortgage rates. The 10-year Treasury yield has risen, reflecting uncertainty over tariffs and federal government debt.
As a result, high mortgage rates have reduced purchasing power for many homebuyers, contributing to the ongoing sales slump in the US housing market. Sales of previously occupied homes sank last month to their lowest level in nearly 30 years, according to the National Association of Realtors.
Economists predict that mortgage rates will remain volatile in the coming months, with forecasts suggesting an average rate on a 30-year mortgage ranging between 6% and 7%. This volatility is expected to impact home sales further, with pending home sales already showing signs of slowing.
Source: https://apnews.com/article/mortgage-rates-housing-interest-financing-home-2ef612bba1dbafa4d7d19d563a78d893