This week, the average long-term mortgage rate in the United States has seen a slight decline, providing some relief to potential homebuyers who have been grappling with elevated borrowing expenses as mortgage rates reached their highest point in almost seven months.
According to Freddie Mac, a mortgage purchasing firm, the typical rate for a 30-year fixed mortgage fell to 6.37%, down from 6.46% the previous week. In comparison, this time last year, the average rate stood at 6.62%.
Just six weeks ago, the average rate had dipped to below 6% for the first time since late 2022, which was a positive sign for homebuyers as the spring buying season approached. However, the onset of conflict in Iran triggered a spike in oil prices, raising concerns about rising inflation.
These inflationary concerns contributed to an increase in the yield on 10-year U.S. Treasury bonds, which serve as a benchmark for banks in setting mortgage rates.
As of midday trading on Thursday, the yield on the 10-year Treasury was recorded at 4.28%, a slight decrease from 4.3% the previous week. This yield was notably lower at 3.97% in late February, prior to the escalation of tensions in Iran.
