Mortgage Rates Rise to Highest Level Since Late November
The average rate on a 30-year mortgage in the U.S. has risen to its highest level since late November, reflecting a recent uptick in the bond yields that lenders use as a guide to price home loans. According to Freddie Mac, the rate rose to 6.72% from 6.6% last week.
Rise in 15-Year Fixed-Rate Mortgages
Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners seeking to refinance their home loan to a lower rate, also rose this week. The average rate increased to 5.92% from 5.84% last week.
Highest Rate Since November 27
The average rate on a 30-year mortgage is now the highest it’s been since November 27, when it was at 6.81%.
Housing Market Slump
Elevated mortgage rates and rising home prices have kept homeownership out of reach of many would-be homebuyers. While sales of previously occupied U.S. homes rose in November for the second straight month, the housing market remains in a slump and on track for its worst year since 1995.
Factors Influencing Mortgage Rates
Mortgage rates are influenced by several factors, including the moves in the yield on U.S. 10-year Treasury bonds. The yield shot up Wednesday after the Federal Reserve signaled that it will likely deliver fewer cuts to rates next year than it forecast just a few months ago.
Yield on U.S. 10-Year Treasury Bonds
The yield, which was below 3.7% as recently as September, was at 4.56% in midday trading Thursday.
Conclusion
The recent rise in mortgage rates and bond yields is a sign of a changing market, and it may continue to impact the housing market. As the Federal Reserve continues to monitor the economy, it will be important to keep an eye on the yield on U.S. 10-year Treasury bonds and its impact on mortgage rates.
Frequently Asked Questions
Q: What is the current average rate on a 30-year mortgage?
A: The current average rate on a 30-year mortgage is 6.72%.
Q: What is the current average rate on a 15-year fixed-rate mortgage?
A: The current average rate on a 15-year fixed-rate mortgage is 5.92%.
Q: Why are mortgage rates rising?
A: Mortgage rates are rising due to the recent uptick in the bond yields that lenders use as a guide to price home loans.
Q: What is the yield on U.S. 10-year Treasury bonds?
A: The yield on U.S. 10-year Treasury bonds is 4.56% as of midday trading Thursday.
