The average rate for a 30-year mortgage in the U.S. remained constant at 6.76%, indicating stability but hovering near the highest levels observed this year.
However, this rate is lower than the average recorded a year ago, which was at 7.09%.
The big picture: The borrowing costs for 15-year fixed-rate mortgages eased slightly. The average rate decreased to 5.89% from 5.92% the previous week and was notably lower than the 6.38% average recorded a year ago, according to mortgage buyer Freddie Mac.
- Various factors play a role in influencing mortgage rates, including global demand for U.S. Treasurys, decisions related to interest rates by the Federal Reserve, and market expectations regarding the economy and inflation held by bond market investors.
- The fluctuations in mortgage rates have been tied to the volatility seen in the 10-year Treasury yield, which serves as a crucial reference point for lenders in setting interest rates for home loans.
Go deeper: Market volatility, including the recent uptick in the 10-year Treasury yield to 4.33%, has impacted mortgage rates. The yield surged due to a sell-off in government bonds provoked by concerns over the trade war under the Trump administration.
- Despite the rise in mortgage rates and home prices, affordability remains a challenge for many potential homebuyers. The median monthly housing payment reached an all-time high of $2,868 in the weeks leading up to May 4, as reported by Redfin, underscoring the hurdles faced by buyers.
