US 30-Year Mortgage Rate Rises for 2nd Straight Week

The average rate on a 30-year fixed mortgage rose by 8bps from the previous week to 6.46% as of April 2nd, the highest in seven months. The increase was aligned with the sharp increase in long-dated Treasury yields, as Iranian forces continued to attack energy tankers in the Middle East and disrupt oil supply for the global economy. The consequent surge in fuel prices stoked pro-inflationary risks and drove multiple FOMC members to project no rate cuts this year.

The average rate on a 30-year fixed mortgage rose to 6.38% as of March 26th after trending near its lowest levels of the year in previous weeks according to data from Freddie Mac. The uptick tracked a climb in Treasury yields as investors weighed heightened inflation concerns fueled by the ongoing war in Iran and a pause in interest rate cuts by the Federal Reserve. “The 30-year fixed-rate mortgage averaged 6.38% this week but remains lower than last year when rates averaged 6.65%. The housing market continues to show gradual improvements compared to a year ago amid recent rate volatility with purchase and refinance applications up year-over-year,” said Sam Khater, Freddie Mac’s chief economist.

The average rate on a 30-year fixed mortgage rose to 6.22% as of March 19th after trending near its lowest levels of the year in previous weeks according to data from Freddie Mac. The uptick tracked a climb in Treasury yields as investors weighed heightened inflation concerns fueled by the ongoing war in Iran and a pause in interest rate cuts by the Federal Reserve. “The 30-year fixed-rate mortgage edged up this week to 6.22% but remains nearly half a 1% point lower than the same time last year. Potential homebuyers are poised for a more affordable spring homebuying season than last with the market experiencing improvements in purchase applications and pending home sales,” said Sam Khater Freddie Mac’s chief economist.