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4 sources·Started 19d ago·Updated 18d ago
Mortgage rates rise to 6.49% as home prices hit record high
Freddie MacNational Association of RealtorsSam KhaterLawrence Yun10-year Treasury yieldIran warRealtor.comZillow
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The average rate on a 30-year fixed-rate mortgage rose to 6.49% this week, up from 6.43% last week, according to Freddie Mac Source: Fox Business. This uptick comes as the 10-year Treasury yield hovers around 4.5%, fueled by renewed tensions with Iran Source: AP News. Meanwhile, existing home sales fell 2.4% in June to an annualized rate of 4.09 million units, missing expectations Source: CNBC. The median home price hit an all-time high of $440,600, up 1.8% from a year ago Source: CNN.
Affordability challenges
"Mortgage rates have not changed much recently, but economic growth and housing affordability continue to improve for homebuyers," said Freddie Mac's Sam Khater Source: Fox Business. However, other experts disagree: Joel Berner of Realtor.com noted that "the deterioration of the situation in Iran has put [mortgage rates] on an upward trajectory yet again" Source: AP News. Sales have been hovering near a 4-million annual pace, far below the historic norm of 5.2 million Source: AP News.
What's next
A bipartisan housing bill, the 21st Century Road to Housing Act, is set to become law automatically unless vetoed, aiming to boost supply Source: CNN. Zillow forecasts mortgage rates drifting to 6.3% by year-end, but that would still be higher than late 2025 levels Source: CNN.
Story timeline · 2 earlier headlines
- US existing home sales fall in June as prices hit record high19d ago · 2 sources
- Existing home sales fall in June as prices hit record high19d ago · 4 sources
- Mortgage rates rise to 6.49% as home prices hit record highcurrent
Sources
5 quotesFox Business↗
“Freddie Mac's latest Primary Mortgage Market Survey, released Thursday, showed the average interest rate on the benchmark 30-year fixed mortgage rose to 6.49%, up from last week's reading of 6.43%.”
AP News↗
“Existing home sales fell 2.4% last month from May to a seasonally adjusted annual rate of 4.09 million units... The U.S. median sales price increased 1.8% in June from a year earlier to $440,600, an all-time high.”
CNBC↗
“Sales of previously owned homes in June dropped 2.4% from May to 4.09 million units on a seasonally adjusted, annualized basis... The median price of an existing home sold in June was $440,600, an increase of 1.8% from the year before and the highest on record.”
CNN↗
“This week, the average 30-year fixed mortgage was 6.49%, according to Freddie Mac, hovering near the highest levels of the year.”
AP News↗
“Expectations of hotter inflation amid higher crude oil prices have pushed up long-term bond yields relative to where they were before the war with Iran began in late February, causing mortgage rates to trend higher.”