Mortgage rates are still stuck north of 6.8%
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Diverging Reports Breakdown
Mortgage rates are still stuck north of 6.8%
The average 30-year mortgage rate was 6.81% for the week through Tuesday, down from 6.84% a week earlier. This week’s rate is the lowest in four weeks, but mortgage rates haven’t been able to break out of a narrow range between 6.8% and 7% since April. The 10-year Treasury yield, which closely tracks mortgage rates, whipsawed and, ultimately, dropped slightly in response to the Israel-Iran conflict and a contraction in retail sales in May.
The average 30-year mortgage rate was 6.81% for the week through Tuesday, down from 6.84% a week earlier, according to Freddie Mac data. The average 15-year mortgage rate was essentially unchanged at 5.96%, from 5.97%. This week’s data collection period was a day shorter than normal to account for Thursday’s Juneteenth holiday.
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This week’s rate is the lowest in four weeks, but mortgage rates haven’t been able to break out of a narrow range between 6.8% and 7% since April.
Learn more: When will mortgage rates go down to 5%?
This week, the 10-year Treasury yield, which closely tracks mortgage rates, whipsawed and, ultimately, dropped slightly in response to the Israel-Iran conflict and a contraction in retail sales in May as consumers remain jittery about tariffs and their financial positions.
Mortgage application activity declined last week even as rates fell. Refinancing applications were down 2%, while applications to purchase a home fell 3%, according to the Mortgage Bankers Association. Rising geopolitical tensions and continued tariff uncertainty may have played a role.
Read more: Is it a good time to buy a house?
“Even with lower average mortgage rates, applications declined over the week as ongoing economic uncertainty weighed on potential homebuyers’ purchase decisions,” Joel Kan, MBA’s vice president and deputy chief economist, said in a statement.
Those hoping for mortgage relief from the Federal Reserve, which is releasing its interest rate decision later Wednesday afternoon, are likely out of luck.
The Fed is expected to keep benchmark interest rates unchanged, and mortgage rates aren’t directly influenced by Fed policy anyway. They do, however, move based on expectations about the future direction of interest rates. Traders currently expect the Fed to cut rates at its September meeting.
Claire Boston is a Senior Reporter for Yahoo Finance covering housing, mortgages, and home insurance.
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Interest rates keep going down but mortgage rates aren’t following suit. Here’s why
The average 30-year mortgage rate is sitting near 6.8% this week. The average rate has been above 6% for the last two years. Experts blame a combination of better-than-expected growth and uncertainty over the economic impact of another Trump administration. Experts say mortgage rates could push even higher if the economy stays strong.
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The average 30-year mortgage rate remains high despite the Federal Reserve again dropping its key interest rate.
CHARLOTTE, N.C. — The Federal Reserve keeps dropping key interest rates, but mortgage rates are actually going up, leaving many prospective homeowners facing a harsh reality.
As mortgage rates continue to climb, potential buyers are starting to accept they won’t come down for a while. Let’s connect the dots.
The average 30-year mortgage rate is sitting near 6.8% this week. In fact, the average rate has been above 6% for the last two years.
So what’s keeping rates that high? Experts blame a combination of better-than-expected growth and uncertainty over the economic impact of another Trump administration.
And while the Federal Reserve has started easing interest rates, those cuts typically only impact long-term lending, like car loans or credit card debt. Mortgages are more closely tied to government bonds.
Experts say mortgage rates could push even higher if the economy stays strong. Because of that, many economists expect the housing market to remain quiet through 2025.
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Source: https://finance.yahoo.com/news/mortgage-rates-are-still-stuck-north-of-68-160758265.html