The average rate on a 30-year mortgage in the U.S. has climbed to its highest point in eight weeks, posing a new hurdle for buyers during the key spring homebuying season.
Mortgage buyer Freddie Mac reported Thursday that the rate rose to 6.83% from 6.62% the week before. A year ago, it averaged 7.1%.
Rates on 15-year fixed mortgages—often favored by homeowners looking to refinance—also increased, rising to 6.03% from 5.82% last week. That’s still lower than the 6.39% average from a year ago, according to Freddie Mac.
Mortgage rates are shaped by a mix of factors, including demand for U.S. Treasurys, decisions by the Federal Reserve on interest rates, and investor expectations around inflation.
In particular, the 30-year mortgage rate tends to track with the 10-year Treasury yield, a key benchmark used by lenders to price home loans..
