US 30‑Year Mortgage Rate Hits One‑Year High of 6.66%

The average 30‑year fixed mortgage rate in the United States rose for the fourth straight week, reaching 6.66% – the highest level in a year and up from 6.58% the week before. The increase mirrors a climb in the 10‑year Treasury yield, which moved to around 4.68‑4.75% as bond markets reacted to higher oil prices and ongoing geopolitical tension in the Middle East. The Federal Reserve kept its policy rate unchanged at 3.5‑3.75%, leaving longer‑term yields to drive mortgage pricing.

Higher borrowing costs are already affecting the housing market. Mortgage applications for purchases and refinances fell 6.4% week‑over‑week, according to the Mortgage Bankers Association. A $400,000 loan now costs roughly $2,571 per month in principal and interest, about $21 more than a week earlier. First‑time buyers and those with limited equity face the sharpest affordability pinch, while many existing homeowners with lower‑rate loans are reluctant to sell, tightening inventory. Lenders and builders are considering rate buydowns and other incentives to sustain demand.

Analysts note that while mortgage spreads have kept rates from matching the 52‑week highs seen in 2023, the sustained rise in Treasury yields suggests further upward pressure unless inflation data eases.