U.S. 30-Year Mortgage Rates Increase to 6.22 %/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ After four straight weeks of declines, the average U.S. 30-year mortgage rate has edged up to 6.22%. The small increase follows last week’s low point, the lowest in over a year. Rates on 15-year fixed mortgages also rose, reflecting broader market influences.
Mortgage Rate Update Quick Looks
- 30-year fixed mortgage rate rises to 6.22%
- Ends four-week streak of declining rates
- Last week’s rate was 6.17%, lowest since October 2024
- 15-year mortgage rate climbs to 5.5% from 5.41%
- Mortgage rates track closely with 10-year Treasury yields
- 10-year yield at 4.09% midday Thursday, down from 4.16%
- Fed policy and inflation expectations influence mortgage trends
- Lower rates help boost homebuyer affordability and refinancing activity
Deep Look: Mortgage Rates Tick Up After Hitting 2024 Lows
After a month-long stretch of falling interest rates, U.S. mortgage rates saw a modest increase this week, halting the downward momentum that had given homebuyers and homeowners a bit of breathing room.
According to Freddie Mac, the average rate on a 30-year fixed mortgage edged up to 6.22%, up from 6.17% last week. That slight rise comes after the rate had reached its lowest point in more than a year, falling to levels last seen on October 3, 2024, when it touched 6.12%.
One year ago, in early November 2024, the average 30-year rate stood significantly higher at 6.79%.
Freddie Mac also reported that 15-year fixed mortgage rates — often used by homeowners looking to refinance — rose this week to 5.5%, up from 5.41% a week earlier. A year ago, that rate hovered around 6%.
While the increase in mortgage rates is slight, it’s notable as the first uptick following four consecutive weeks of declines. The recent slide in rates was largely attributed to softening Treasury yields and investor expectations that the Federal Reserve might pause further interest rate hikes amid signs of economic moderation.
Mortgage rates are not directly controlled by the Federal Reserve but are heavily influenced by the yield on 10-year U.S. Treasury bonds, which lenders often use as a benchmark to set rates. This week, the 10-year Treasury yield dipped slightly to 4.09% as of midday Thursday, down from 4.16% the day prior.
Factors such as inflation forecasts, investor sentiment, and monetary policy all influence Treasury yields — and by extension, mortgage rates. Even minor changes in yields can shift mortgage rates, which in turn affect affordability in the housing market.
Lower mortgage rates typically provide relief to potential homebuyers, increasing purchasing power and improving monthly affordability. They also encourage homeowners to refinance existing mortgages, reducing overall borrowing costs. The recent rate decline had sparked renewed interest in refinancing and supported some increased activity in a sluggish housing market.
However, housing affordability remains a challenge for many buyers, with home prices staying high in most markets and inventories still limited. Even with rates slightly lower than peak 2023 levels, today’s rates are still well above the sub-4% levels seen before inflation surged in 2022.
While this week’s small rate bump doesn’t dramatically change borrowing conditions, it serves as a reminder that the mortgage market remains sensitive to broader economic signals. The Federal Reserve’s future interest rate decisions and ongoing developments in inflation will continue to play a critical role in shaping mortgage trends heading into the end of the year.
You must Register or Login to post a comment.