Freddie Mac reports that the average 30-year fixed-rate mortgage rate rose to 6.66% for the fourth consecutive week.
The average long-term U.S. mortgage rate reached its highest level in a year on Thursday, rising to 6.66% for the 30-year fixed-rate mortgage. This increase marks the fourth consecutive week of growth, according to data from Freddie Mac. The upward trend is driven by persistent inflation and renewed tensions in the Middle East, particularly the Iran war, which has pushed crude oil prices higher. While the Federal Reserve left its key interest rate unchanged this week, three regional bank presidents dissented in favor of a hike, signaling that near-term rate relief for homebuyers may be unlikely. Experts suggest that a de-escalation in the Iran conflict and a reopening of the Strait of Hormuz are necessary for rates to be to lower. High borrowing costs continue to weigh on the housing market, with mortgage applications falling 6.4% last week. The national housing market slump, which began in 2022, persists as high rates limit the purchasing power of prospective homebuyers.