The average 30-year fixed mortgage rate in the U.S. rose slightly to 6.09% from 6.06% last week, remaining near its lowest point in over three years; a year ago it was 6.96%.
The 15-year fixed-rate mortgage also increased, reaching 5.44%, up from 5.38% last week and down from 6.16% a year ago.
The big picture: Mortgage rates are closely linked to the 10-year Treasury yield, which recently jumped in response to geopolitical tensions and market turbulence.
- The 10-year Treasury yield rose to 4.27% from 4.17% a week ago, influencing the uptick in mortgage rates.
- Housing market activity remains sluggish since 2022, with high mortgage rates, rising home prices, and a national home shortage making it tough for many to afford buying.
- Sales of existing homes stayed at 30-year lows for much of last year, though a drop in rates late last summer helped boost sales by 5.1% in December.
Go deeper: Refinancing activity surged recently, with applications for mortgage refinancing jumping 20% last week and making up nearly 62% of all home loan applications.
- Applications for new home purchases also saw a 5% rise, reflecting some buyer optimism as rates eased slightly.
What we’re watching: Most economists predict mortgage rates may gradually decline through the year, but expect 30-year fixed rates to stay above 6%.
- Many homeowners are locked in at historically low rates: about 69% have fixed rates of 5% or lower, and just over half have rates at or below 4%.
