FX.co ★ US Mortgage Rate Rises to 6.81%

On May 15th, the average rate for a 30-year fixed mortgage backed by Freddie Mac increased to 6.81%, up from 6.76% the previous week. This uptick in mortgage rates is attributed to rising long-term Treasury yields, stemming from diminished global trade tensions and a subsequent decrease in the demand for safe-haven assets. A notable improvement in investor confidence came after the United States and China reached a 90-day mutual tariff reduction agreement, alleviating concerns that extended trade conflicts might drive the U.S. economy into a recession. According to Sam Khater, Chief Economist at Freddie Mac, the 30-year fixed mortgage rate has remained below the 7% threshold for 17 consecutive weeks. With stable mortgage rates and a moderately increasing inventory, more homebuyers are entering the market, as evidenced by an 18% rise in purchase application activity compared to last year.