The average interest rate for a 30-year mortgage in the United States has experienced an increase for the third consecutive week, hitting its highest point in the last eight weeks.
According to mortgage lender Freddie Mac, the current rate climbed to 6.44%, up from 6.32% recorded the previous week. In contrast, this time last year, the average rate was notably higher at 7.63%.
The last recorded peak for the average rate occurred on August 22, when it reached 6.46%. Just three weeks prior, the average rate had fallen to its lowest level in two years at 6.08%. This decline provided a temporary boost for homebuyers, giving them more leverage in a housing market where prices are nearing historical highs.
Mortgage rates are shaped by various elements, one of which is the response of the bond market to the interest rate policies set by the Federal Reserve. These factors can influence the direction of the 10-year Treasury yield, which lenders look to when determining home loan pricing. As of Thursday, the yield on the 10-year Treasury was recorded at 4.09%, a rise from 3.62% observed in mid-September, just prior to the Federal Reserve’s reduction of its benchmark lending rate by half a point.
