US Mortgage Rates Ease from 9-Month High

The average rate on a 30-year fixed-mortgage was at 6.48% in the first week of June, easing from the nine-month high of 6.53% in the previous week, according to data compiled by Freddie Mac. The pullback was consistent with the drop in long-term Treasury yields over the period as signs that the US is chasing an agreement with Iran to extend their ceasefire lowered prices of key energy commodities.

The average rate on a 30-year fixed-mortgage inched higher by 2bps from the previous week to 6.53% on the last week of May, according to data compiled by Freddie Mac. It was the highest level in nine months. The jump took place despite the pullback in long-term Treasury yields over the period as signs of progress between the US and Iran in their conflict trimmed soaring inflation concerns, although benchmark borrowing costs remained high.

The average rate on a 30-year fixed-mortgage rose by 15bps from the previous week to 6.51% as of May 21st, the highest in nine months, according to data compiled by Freddie Mac. The jump was aligned with the increase in long-term Treasury yields over the period, as soaring energy prices and robust labor market data raised expectations of a potential rate hike by the Federal Reserve. The yield on the 30-year Treasury bond, closely related to MBS of the same maturity, rose to its highest since 2007. “As rates fluctuate, aspiring buyers should remember that by shopping around for the best mortgage rate and getting multiple quotes, they can potentially save thousands." said Sam Khater, Freddie Mac’s Chief Economist.