Average rate on US 30-year mortgage remains at 6.76%, close to highest levels this year

From Yahoo Finance: 2025-05-08 12:01:00

The average rate on a 30-year mortgage in the U.S. remained at 6.76%, close to this year’s highest levels but lower than a year ago. Borrowing costs for 15-year fixed-rate mortgages dropped to 5.89% from 5.92% last week and 6.38% a year ago, according to Freddie Mac.

Mortgage rates are impacted by global demand for U.S. Treasurys, the Federal Reserve’s interest rate decisions, and bond market expectations about the economy and inflation. Recent rate fluctuations reflect volatility in the 10-year Treasury yield, which lenders use to price home loans.

Elevated mortgage rates and increasing home prices are challenges for potential homebuyers, affecting the spring homebuying season. Sales of previously owned U.S. homes dropped in March, with the median monthly housing payment hitting an all-time high of $2,868 in the four weeks ending May 4, per Redfin.

Economists anticipate continued volatility in mortgage rates, with expectations for 30-year mortgage rates to remain above 6.5% this year. The Federal Reserve recently maintained its main interest rate, which can influence mortgage rate trends. Policy developments, like U.S.-China trade talks, could impact rates in the near future, noted economist Jiayi Xu from Realtor.com.



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