Close to 7%! U.S. mortgage rates rise to the highest level since July of last year
This week, mortgage rates in the United States rose to their highest level since July of last year. According to Freddie Mac, the average rate for a 30-year fixed mortgage increased from 6.85% last week to 6.91%. In comparison, the rate was 6.62% at the same time last year. The rise in mortgage costs primarily reflects the increase in bond yields, as lenders typically use bond yields as a reference for pricing mortgages. At the same time, home prices continue to rise steadily. For homeowners seeking refinancing, the average rate for a 15-year fixed mortgage increased from 6% last week to 6.13%, also reaching the highest level since July. Last year, this rate was 5.89%. The ongoing rise in rates is closely related to the Federal Reserve's monetary policy. The Fed indicated last month that it expects to raise the benchmark rate only twice this year, down from the four increases anticipated in September of last year. Nevertheless, inflation remains stubbornly above the Fed's 2% target. Additionally, economists are concerned that Trump's economic policies, particularly plans to significantly raise import tariffs, could further drive up inflation. This series of factors has collectively contributed to the rise in mortgage rates, placing greater economic pressure on homebuyers
According to the Zhitong Finance APP, this week, mortgage rates in the United States rose to their highest level since July of last year. Data from Freddie Mac shows that the average rate for a 30-year fixed mortgage increased from 6.85% last week to 6.91%. In comparison, the rate at the same time last year was 6.62%.
The rise in mortgage costs primarily reflects the increase in bond yields, as lenders typically use bond yields as a reference for pricing mortgages. At the same time, home prices continue to rise steadily.
For homeowners seeking refinancing, the average rate for a 15-year fixed mortgage increased from 6% last week to 6.13%, also reaching the highest level since July. Last year at the same time, this rate was 5.89%.
The continued rise in rates is closely related to the Federal Reserve's monetary policy. The Fed indicated last month that it expects to raise the benchmark rate only twice this year, down from the four increases anticipated last September. Nevertheless, inflation remains stubbornly above the Fed's target of 2%.
Additionally, economists are concerned that Trump's economic policies, particularly the plan to significantly raise import tariffs, could further drive up inflation. This series of factors has collectively pushed mortgage rates higher, placing greater economic pressure on homebuyers