U.S. Mortgage Rates Rise as Treasury Yields Climb

U.S. mortgage rates increased this week, with the benchmark 30-year fixed rate rising to 6.66% from 6.65% the previous week. According to Freddie Mac, this shift returns average rates to levels seen four weeks ago and nears the yearly high of 6.69%. The 15-year fixed-rate mortgage also saw an increase, moving from 5.95% to 5.98%.

These increases are driven by rising 10-year Treasury yields, which reached 4.66% as of Thursday. Market pressure stems from growing U.S. government debt and inflation expectations fueled by soaring crude oil prices and a war with Iran. These factors have limited purchasing power for homebuyers and contributed to a continuing slump in the U.S. housing market.

The United States Department of the Treasury intervened last week to address the rising bond yields, though the impact of this action may be limited. The Federal Reserve System continues to influence these trajectories through its broader policy rate decisions.