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yesterday

U.S. Mortgage Rates Reach Highest Levels Since February, Pressuring Spring Housing Market

The average 30-year mortgage rate climbed to 6.86% this week, driven by rising Treasury yields after Moody’s downgraded U.S. federal debt.

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 rate for a 30-year fixed mortgage rose to 6.86%, the highest since mid-February, according to Freddie Mac.
  • Rates for 15-year fixed mortgages also increased, reaching 6.01%, up from 5.92% the previous week.
  • Higher mortgage rates have dampened demand, leading to the slowest April for existing-home sales since 2009, per the National Association of Realtors.
  • Despite sluggish sales, median home prices hit a record $414,000 for April, marking a 1.8% year-over-year increase.
  • For-sale inventory grew to 1.2 million homes in April, nearly 20% higher than a year ago, providing more options for buyers but limited relief from affordability challenges.