U.S. mortgage rateshousing marketFederal ReserveThe average long-term U.S. mortgage rate rose to 6.88%, marking its highest level in five weeks and affecting prospective homebuyers during a peak home sales season.
According to Freddie Mac, the average rate on a 30-year mortgage increased from 6.82% to 6.88% this week, reaching its highest level in five weeks and complicating affordability for prospective homebuyers amid a constrained supply of homes for sale and rising prices. The rise in rates comes as bond investors react to strong employment and inflation reports, raising doubts about the Federal Reserve's timeline for reducing its benchmark interest rate.