The average long-term U.S. mortgage rate has increased for the third consecutive week, impacting home loan borrowing costs as the spring homebuying season gains momentum. According to Freddie Mac, the average rate on a 30-year mortgage rose to 6.90% from 6.77% last week, marking a significant increase from the 6.5% rate recorded a year ago.
Similarly, 15-year fixed-rate mortgages also experienced a rise in borrowing costs, with the average rate climbing to 6.29% from 6.12% last week. This surge in rates is attributed to movements in the 10-year Treasury yield, which serves as a benchmark for loan pricing. Positive economic indicators such as reports on inflation, job market strength, and overall economic performance have raised concerns among bond investors regarding potential delays in Federal Reserve interest rate cuts.
