According to Jinshi, U.S. mortgage rates rose to their highest level since mid-December last year as the real estate market entered the critical spring selling season. Freddie Mac said the average rate for a 30-year fixed-rate mortgage was 6.77%, up from 6.64% last week. Benchmark U.S. Treasury yields soared this week after a higher-than-expected inflation report caused traders to postpone bets on the timing of the Federal Reserve's interest rate cut.
The prospect of higher borrowing costs for an extended period could keep buyers and sellers on the sidelines during the housing market’s busiest season. Many existing homeowners have mortgage rates below 4%, making them reluctant to list their properties for more expensive loans. That’s leaving a serious shortage of homes, especially more affordable ones.