Overview
- Freddie Mac, which reported Thursday’s jump to 6.38%, said the average 30-year fixed rate rose for a fourth straight week to its highest level in more than six months.
- The increase tracks a rise in the 10-year Treasury yield to about 4.38%–4.39% as oil prices moved back above $100 a barrel, a combination that raises lenders’ costs and feeds directly into mortgage quotes.
- Borrowing cooled as the Mortgage Bankers Association said total applications fell 10.5% last week and refinance activity dropped 15%, signaling a softer start to the spring buying season.
- With scant listings and past price run-ups, buyers face tighter budgets, and on a $450,000 home with 20% down today’s rate adds about $1,120 per year versus a month ago.
- The Federal Reserve held rates on March 18 and projected one cut this year, though several economists warn wartime energy costs could keep inflation elevated and delay that plan.