Key facts
- The average US 30-year fixed-rate mortgage rate reached 7.40% this week.
- This is the highest level for the 30-year fixed mortgage rate since November 2023.
- The rate has increased for seven consecutive weeks.
- The 10-year Treasury yield has risen to its highest level since 2002.
The average rate on the US 30-year fixed-rate mortgage has climbed to 7.40%, its highest point since November 2023, as concerns over inflation and rising Treasury yields continue to pressure the housing market. This marks the seventh consecutive weekly increase for the benchmark rate.
Freddie Mac reported on Thursday that the 30-year fixed mortgage rate averaged 7.40%, up from 7.28% the previous week. A year ago, the average rate stood at 6.30%. The rate on 15-year fixed-rate mortgages also rose, reaching 6.73% from 6.60% last week.
The increase in mortgage rates is attributed to higher energy prices, fueled by the US-Iran conflict, which in turn are driving up longer-term Treasury yields. The yield on the benchmark 10-year Treasury note, a key indicator for mortgage rates, has reached a 24-year high, trading at 5.29% midday Thursday. This is significantly higher than its 3.97% level before the conflict began in late February. The average 30-year fixed-rate mortgage has seen a surge of 142 basis points since the start of the war.