US mortgage rates ease to 6.48%, slips from from nine-month high

The average rate on a 30-year fixed mortgage in the United States eased last week after climbing to its highest level in nine months, offering some relief to prospective homebuyers navigating a challenging housing market.According to Freddie Mac, the US-government-sponsored mortgage finance corporation whose weekly survey is widely regarded as a key indicator of US home-loan borrowing costs, the average rate on a 30-year fixed mortgage fell to 6.48 per cent from 6.53 per cent a week earlier, reported Associated Press.A decline in mortgage rates generally boosts affordability by lowering borrowing costs and increasing the purchasing power of homebuyers. However, rates remain elevated compared with levels seen earlier this year.The recent movement in mortgage rates comes amid continued market concerns over inflation and energy prices. Rates have largely trended higher since the outbreak of the Iran conflict, which disrupted shipping through the Strait of Hormuz, a vital route for global oil supplies.Higher oil prices have added to inflation concerns, influencing bond markets and borrowing costs. Mortgage rates are typically shaped by several factors, including Federal Reserve policy, inflation expectations and movements in long-term Treasury yields.The yield on the benchmark 10-year US Treasury note stood at 4.47 per cent on Thursday, up slightly from 4.45 per cent a week earlier. Before the conflict began in late February, the yield was around 3.97 per cent.Mortgage rates generally follow the direction of the 10-year Treasury yield, which lenders use as a benchmark when pricing home loans. Expectations that energy prices could remain elevated have helped keep long-term bond yields high, limiting the scope for a sharper decline in mortgage rates.Earlier this year, the average rate on a 30-year mortgage briefly dipped below 6 per cent for the first time since late 2022. However, borrowing costs have since risen again, reaching 6.56 per cent last week, their highest level since August.The higher-rate environment continues to weigh on the US housing market. Sales of previously owned homes were largely unchanged in April after declining on a year-on-year basis during the first three months of 2026, extending a housing slowdown that began in 2022 as mortgage rates moved away from pandemic-era lows.Market participants will get a fresh outlook on housing demand this week when data on existing home sales for May is released.