Mortgage rates hit highest level in nearly a year - Fox Business

What the report says

Fox Business reported that mortgage rates climbed again this week, with Freddie Mac’s Primary Mortgage Market Survey putting the average 30-year fixed rate at 6.58%. That was up from 6.55% a week earlier and marked the highest level in about 11 months, according to the report. The rate was 6.74% at the same point a year earlier.

The average 15-year fixed mortgage also increased, reaching 5.96% from 5.93% the prior week. Fox Business cited Freddie Mac Chief Economist Sam Khater, who said borrowers could benefit from comparing offers because even modest rate differences can lead to meaningful savings over the life of a loan.

The report said mortgage rates are influenced by broader market conditions, including Federal Reserve policy expectations, Treasury yields and geopolitical developments. While mortgage rates do not move directly with Fed rate decisions, they often track the 10-year Treasury yield, which Fox Business said was slightly higher at 4.699% Thursday afternoon. LoanDepot economist Jeff DerGurahian linked the latest rate environment to inflation concerns and renewed U.S.-Iran conflict, noting that rising oil prices can feed worries about future energy-driven inflation.

The development matters because elevated borrowing costs continue to weigh on housing affordability, even as some market conditions have improved for buyers. Fox Business noted a Realtor.com midyear forecast update projecting home price growth of 1.2% this year, slower than earlier expected and below inflation, implying a real, inflation-adjusted decline in prices.