Mortgage Rates Jump to 6.62% as 10-Year Treasury Hits 4.59% on Iran, Inflation Fears
Updated
Updated · Real Estate News · May 15
Mortgage Rates Jump to 6.62% as 10-Year Treasury Hits 4.59% on Iran, Inflation Fears
2 articles · Updated · Real Estate News · May 15
The 10-year Treasury climbed to 4.59% on May 15—its highest in a year—pushing the average 30-year fixed mortgage rate to 6.62%, according to Mortgage News Daily.
Oil-driven inflation fears intensified after the U.S.-China summit ended without progress on the Iran war, now nearing its 12th week, reinforcing bets that energy prices will stay high.
April inflation ran at 3.8% from a year earlier, with wages failing to keep pace, while investors now see a 50% chance U.S. interest rates finish 2026 above current levels.
Fannie Mae and Freddie Mac purchases of mortgage-backed securities helped keep mortgage rates from rising even further, cushioning some of the Treasury selloff's impact.
The rate jump hits a housing market trying to recover from a weak spring, though pending sales have recently improved and more homeowners are turning to HELOCs instead of refinancing.
Are surging mortgage rates a sign of a failed diplomatic summit or deeper, persistent inflation fears?
Will conflicting U.S.-China summit reports trigger more instability for global markets and American homebuyers?