FX.co ★ 30-Year Mortgage Rate Rises to 3-Month High

As of May 22nd, the average interest rate on a 30-year fixed mortgage insured by Freddie Mac increased by 5 basis points from the preceding week, reaching 6.86%. This marks the highest rate seen in over three months, influenced by the rising yields on long-term Treasury bonds. Ongoing concerns regarding the sustainability of higher U.S. deficits have prompted investors to seek greater premiums for holding fixed income securities. "While mortgage rates edged upward this week, they remain below levels from a year ago. The current market offers more inventory for buyers compared to recent years, which is helping to sustain the volume of purchase applications," stated Sam Khater, Freddie Mac’s Chief Economist.