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Mortgage Rates Hold Near Mid-6% as Buyers Return

Narrower mortgage spreads kept rates below 7% despite fresh inflation pressure.

Overview

  • Freddie Mac’s survey released Thursday put the 30-year average at 6.36%, even as daily and lender trackers showed five‑week highs near the mid‑6% range.
  • Mortgage applications rose 1.7% in the week ending May 8, with purchase loans up 4% and about 7% above a year ago, while refinances slipped 1% and fell to a 40.8% share.
  • Following Tuesday’s hotter Consumer Price Index and Wednesday’s strong Producer Price Index, Treasury yields climbed and several rate gauges jumped in response to the inflation shock.
  • Improved mortgage spreads—the gap between mortgage rates and the 10‑year Treasury yield—have narrowed this year, which has helped keep most 30‑year offers under 7% even as yields rose.
  • Rates briefly dipped below 6% in late February before the Iran war and higher oil prices pushed the 10‑year into the mid‑4% range, leaving borrowers facing volatile costs but showing signs of adapting.