U.S. mortgage rates continued their climb last week, reaching a seven-month high. The average rate on a 30-year mortgage jumped to 6.46 percent, marking the fifth consecutive weekly increase.
The rising rates are attributed to increasing oil prices and resulting inflation fears, which have driven up Treasury bond yields – benchmarks lenders use to set mortgage rates. This trend represents a setback for potential homebuyers during the typically active spring season.
The increases are impacting both home purchase and refinancing activity, making homeownership less affordable for many. Rates have now reached their highest point since August of last year.
These developments dampen hopes for a robust spring homebuying season as affordability challenges grow for prospective buyers.