Key US mortgage rate hits 9-month high, Freddie Mac says

The interest rate ​on the most ​popular U.S. home ‌loan shot ​to its highest since August this week as yields on ‌the government bonds most influential in setting residential borrowing costs have climbed on concern about the inflation being ‌aggravated by the war with Iran. Home financing ‌giant Freddie Mac on Thursday said the rate on the 30-year fixed-rate mortgage climbed to an average of 6.51% ⁠as ​of Thursday ⁠from 6.36% last week.

The interest rate ​on the most ​popular U.S. home ‌loan shot ​to its highest since August this week as yields on ‌the government bonds most influential in setting residential borrowing costs have climbed on concern about the inflation being ‌aggravated by the war with Iran.

Home financing ‌giant Freddie Mac on Thursday said the rate on the 30-year fixed-rate mortgage climbed to an average of 6.51% ⁠as ​of Thursday ⁠from 6.36% last week. The 15-basis-point jump was the largest ⁠in eight weeks.

The yield on the 10-year U.S. ​Treasury note, used as a benchmark for setting ⁠consumer mortgage costs, has risen from around 4% in late ⁠February ​before the U.S. and Israel launched air strikes on Iran, to more than ⁠4.60% now. That has pulled the 30-year mortgage rate from ⁠just ⁠below 6% before the conflict began - then the lowest since September 2022 - to ‌the ‌latest level above 6.50%. (Reporting By ​Dan Burns)