The average interest rate on 30-year fixed-rate mortgages in the United States climbed to 6.65% for the week ending July 10, marking the highest level in nearly a year.
The benchmark rate, tracked by Freddie Mac, rose from the previous week's figure of 6.49%, where it had held steady for the week ending July 9.
Handelsavisen notes that the sustained elevation of mortgage rates above 6% continues to weigh on housing demand, potentially slowing price growth and transaction volumes.
This increase underscores the persistence of elevated borrowing costs for homeowners and potential buyers, despite earlier hopes for a more rapid decline in housing finance rates.
The rise in mortgage rates reflects broader market dynamics where investors are demanding higher yields on long-dated Treasuries, often in response to sticky inflation data or expectations that the Federal Reserve will maintain a restrictive policy stance for longer than previously anticipated.
For the housing market, this development adds further headwinds to an already sluggish sector, where affordability remains a critical constraint for many households.
Handelsavisen notes that the sustained elevation of mortgage rates above 6% continues to weigh on housing demand, potentially slowing price growth and transaction volumes.