The average rate on a 30-year mortgage in the U.S. increased to 6.84% from 6.78%, reaching its highest level since July.
The big picture: Borrowing costs for 15-year fixed-rate mortgages also rose, with the average rate climbing to 6.02% from 5.99%.
- Rising mortgage rates impact homebuyers by increasing monthly costs and reducing purchasing power, especially with near all-time high home prices.
- The increase in mortgage rates is influenced by movements in the 10-year Treasury yield, which has been rising following mixed reports on inflation and the economy.
Driving the news: Mortgage rates previously fell to around 6% in September as a result of the Federal Reserve’s interest rate cut, but have been on the rise since then.
What we’re watching: Economists predict that mortgage rates will remain volatile but generally hover around 6% in 2025, influenced by various factors such as government spending and economic conditions.
