Market Snapshot: Rates at a One-Year Peak
Mortgage rates jumped to the highest level in almost a year, according to Freddie Mac’s latest Primary Mortgage Market Survey released this week. The 30-year fixed-rate mortgage averaged 6.55%, up from 6.49% a week earlier and the highest level since August of last year. A year ago, the rate stood around 6.75%. The shift adds another hurdle for buyers already navigating higher prices and tighter credit conditions.
Rates for the 15-year fixed mortgage also climbed, averaging 5.93% this week, up from 5.82% in the prior survey. Shorter-term loans are not immune to the move, and the broader yield environment—driven by inflation concerns, global tensions, and oil volatility—helps explain the pressure on fixed rates across the curve.
Investors are watching the bond market closely as the U.S. inflation picture remains in flux. The 10-year Treasury yield hovered around 4.57% on Thursday afternoon, a key gauge that often tracks mortgage rate direction. Traders will be parsing fresh inflation data and geopolitical headlines for clues about how long mortgage rates may stay elevated.
Freddie Mac chief economist Sam Khater offered a tempered take on the backdrop for buyers. 'Purchase demand has softened in recent weeks, but housing affordability remains a factor that could help some buyers regain footing as inventory trends shift,' he said. The latest data show housing supply edging higher in many markets, which can ease price pressure over time.
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