US long-term mortgage rates rose for a fifth consecutive week to their highest level in just over a year, adding strain for prospective homebuyers facing steep borrowing costs, reports infohub.kz.
According to Freddie Mac, the average 30-year fixed-rate mortgage rose to 6.69%, up slightly from 6.66% last week. A year ago, the rate was 6.63%, and it hasn't been higher since late July 2025.
Higher mortgage rates can add hundreds of dollars a month in costs for borrowers, limiting homebuyers' purchasing power. As rates rise, prospective buyers may delay purchasing a home, one reason U.S. home sales have been sluggish this year.
Meanwhile, borrowing costs on 15-year fixed-rate mortgages fell slightly this week, averaging 6.01%, down from 6.04% last week. A year ago, it was 5.75%, Freddie Mac said.
Mortgage rates are influenced by several factors, including inflation, Federal Reserve policy, and bond market investors' expectations for the economy. They generally follow the trajectory of the 10-year Treasury yield, which lenders use as a guide to pricing home loans.
Rates have been mostly rising this year as the U.S. war with Iran fueled expectations for hotter inflation as crude oil prices soared. Despite easing oil prices recently, long-term bond yields remain steeper than before the conflict began in late February, pushing mortgage rates higher.
The 10-year Treasury yield was 4.65% as of midday Thursday on the bond market. Before the war, it was just 3.97% in late February.