US 30-Year Mortgage Rate Hits 6.53%, Highest in 9 Months as Oil-Fueled Yields Rise
Updated
Updated · abcnews.com · May 28
US 30-Year Mortgage Rate Hits 6.53%, Highest in 9 Months as Oil-Fueled Yields Rise
6 articles · Updated · abcnews.com · May 28
Freddie Mac said the average 30-year fixed mortgage rate rose to 6.53% this week from 6.51%, marking its highest level in nine months.
Higher oil-price expectations have pushed up long-term Treasury yields, and mortgage rates have climbed with them since the war with Iran disrupted Persian Gulf tanker traffic.
At 6.53%, the benchmark rate is still below 6.89% a year ago, but even small increases can add hundreds of dollars to monthly borrowing costs and erode buyers' purchasing power.
Mortgage rates are shaped by Federal Reserve policy, inflation expectations and bond-market moves, with the 10-year Treasury yield serving as a key guide for home-loan pricing.
Is the Iran war masking a deeper government debt issue that will keep mortgage rates high for years?
Can new credit scoring rules really help buyers overcome the impact of war-fueled interest rates?
Are we entering a new era where the 30-year fixed mortgage is no longer affordable for most Americans?