US 30-year mortgage rate 6.71% highest in over a year
If you're thinking about buying a home, heads up: the average US 30-year fixed mortgage rate has climbed to 6.71% this week, the highest it's been in over a year.
This uptick is mainly because Treasury yields are rising and inflation isn't letting up, making it tougher for people to afford homes, especially with energy prices also on the rise thanks to global tensions.
Surging yields keep mortgage rates high
Mortgage rates are closely tied to Treasury yields, which have surged lately due to federal borrowing concerns and investments in AI infrastructure.
The Fed is watching inflation closely; even though there's been some good news recently, prices have stayed above their target for about 5 1/2 years.
That means borrowing costs aren't likely to drop anytime soon, so expect things to stay pricey for a while.