Mortgage rates increase after US credit downgrade, 30-year rate now over 7%.

From Yahoo Finance: 2025-05-22 12:15:00

Mortgage rates increased this week after the US lost its top credit rating, leading to a rise in yields. The average 30-year rate is now 6.86%, up from 6.81%, while the 15-year rate increased to 6.01% from 5.92%. 10-year Treasury yields also rose sharply following Moody’s downgrade of US debt. Concerns about tariffs and growing debt have made investors reassess US Treasurys as a safe-haven asset, pushing rates higher. This has resulted in an average mortgage rate of over 7% for some buyers. Despite Moody’s downgrade being largely symbolic, it has impacted bond markets. US government bond yields have risen across the board, with the 10-year Treasury now yielding 4.56%. Mortgage demand has weakened as rates rise, with purchases and refinancing applications down 5%. Existing home sales also declined in April, suggesting a slow start to the spring buying season. NAR’s chief economist noted growing housing demand but few buyers taking action, hoping for a decline in mortgage rates to boost activity.



Read more at Yahoo Finance: Mortgage rates inch up as US credit downgrade weighs