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yesterday

U.S. Mortgage Rates Hit 6.86%, Highest Since February

Rising Treasury yields, driven by a credit downgrade and fiscal concerns, slow home sales to their weakest April since 2009.

Growing concern about the national debt impacted home borrowing rates this week.
FILE - A sign announces the sale of a new home, Jan. 16, 2024, in Kennesaw, Ga. (AP Photo/Mike Stewart, File)
The Fannie Mae headquarters
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Overview

  • The average 30-year fixed mortgage rate rose to 6.86% this week, its highest level since February, according to Freddie Mac.
  • The increase follows a Moody's downgrade of U.S. debt, which triggered a sell-off in Treasurys and pushed yields higher.
  • Home sales in April dropped to their slowest pace for the month since 2009, reflecting the impact of elevated borrowing costs.
  • Despite weaker sales, the median existing-home price climbed 1.8% year-over-year to $414,000, marking a record for April.
  • Policy debates, including proposed tax legislation and the potential privatization of Fannie Mae and Freddie Mac, add to market uncertainty.