Average US rate on 30-year mortgage climbs to 6.83%, highest level in eight weeks

The average interest rate on a 30-year mortgage in the U.S. has reached its highest point in eight weeks, posing a challenge for prospective homebuyers during the spring real estate season. According to Freddie Mac, the rate has increased to 6.83% from 6.62% last week, although it was lower at 7.1% a year ago. Additionally, the average rate on 15-year fixed-rate mortgages, commonly used for refinancing, has also gone up to 6.03% from 5.82% last week, but it remains lower than the 6.39% recorded a year ago. Various factors such as global demand for U.S. Treasuries, decisions on interest rates made by the Federal Reserve, and investors’ expectations of future inflation impact mortgage rates. The movement of the 10-year Treasury yield, which guides lenders in setting mortgage prices, closely aligns with changes in the average 30-year mortgage rate. After a decline earlier this year from its peak of around 4.8% in mid-January, the 10-year Treasury yield rose to 4.5% last week due to concerns over the consequences of the Trump administration’s tariff disputes, triggering a sell-off in government bonds. As of Thursday, the 10-year Treasury yield stood at 4.32% during midday trading.