30-year mortgage rate rises to 6.52% again

average 30-year – The average U.S. 30-year fixed mortgage rate moved up to 6.52% this week, edging just below its highest level for the year. Higher borrowing costs—driven by bond yields and inflation pressures tied to the U.S.-Iran conflict—are keeping many would-be buyers on

For many people shopping for a home, the calculation is brutally simple: a small uptick in a mortgage rate can translate into hundreds of dollars more each month. This week, that risk became harder to ignore.

The average long-term U.S. mortgage rate ticked up to 6.52% from 6.48% last week, according to mortgage buyer Freddie Mac. The move put the benchmark 30-year fixed rate just below its high for the year.

Even with the increase, the average rate remains below 6.84%—the level it was a year ago. Still, the direction matters. Mortgage rates that climb can add hundreds of dollars a month in costs for borrowers, shrinking purchasing power and leaving more buyers to pause their plans.

Mortgage rates don’t move in isolation. They’re shaped by the Federal Reserve’s interest rate policy decisions and by what bond market investors expect for the economy and inflation. In practice, rates often track the 10-year Treasury yield, which lenders use as a pricing guide for home loans.

That link has become especially important since the conflict between the U.S. and Iran began in late February. The war has disrupted the flow of crude oil from the Persian Gulf to customers worldwide. sending oil prices sharply higher. Higher oil prices have fed into inflation. and expectations that oil will stay expensive as the war drags on have kept long-term bond yields elevated—pushing mortgage rates mostly higher.

In Thursday’s bond market, the yield on the U.S. 10-year Treasury note was 4.53% in midday trading. That’s up from 4.47% a week earlier. The yield was 3.97% in late February, before the war broke out.

The rise comes after a brief moment of relief earlier this year. As recently as late February. the average rate on a 30-year mortgage slipped just under 6% for the first time since late 2022. Since then, it hasn’t fallen below that 6% threshold. Two weeks ago, it climbed to 6.53%, the highest level since August 28.

The steady upward pressure has left would-be buyers uncertain about how much higher rates might go. Even though average long-term mortgage rates are lower than they were at this time last year, many home shoppers have stayed on the sidelines this year.

Housing activity has mirrored that caution. Sales of previously occupied U.S. homes declined in the first three months of the year compared to a year earlier. extending a nationwide housing slump that dates back to 2022. when mortgage rates began climbing from pandemic-era lows. Sales were essentially flat in April, then accelerated in May to their fastest pace since December.

Still, existing home sales continue to hover close to a 4-million annual pace, far below the historic norm of closer to 5.2-million.

The numbers underline the same tension playing out in real household budgets: mortgage rates may not be at last year’s highs, but the market has shown it can move upward quickly—and it has stayed sensitive to inflation and bond yields ever since the U.S.-Iran conflict began in late February.

U.S. mortgage rate 30-year fixed Freddie Mac housing market Treasury yield 10-year Treasury inflation Federal Reserve U.S.-Iran conflict existing home sales