US Mortgage Rates Rise Amid Fed Cut, Treasury Yields, Economic Uncertainty

Mortgage rates in the U.S. have recently increased slightly to around 6.34% for a 30-year fixed mortgage, despite the Federal Reserve's recent rate cut, reflecting market dynamics tied to Treasury yields rather than direct Fed policy. Experts note that mortgage rates are influenced by factors such as inflation, global events, and demand for mortgage-backed securities, contributing to volatility and making accurate mortgage quotes more complex. Fannie Mae forecasts a modest decline in mortgage rates to around 5.9% by the end of 2026, which could significantly boost home affordability and sales, with the National Association of Realtors estimating that a 6% rate could enable 5.5 million more households to afford homes. However, underlying economic challenges such as rising housing prices and higher interest rates have tempered mortgage demand and slowed growth in mortgage lending in places like Azerbaijan. Additionally, in the UK, despite low interest rates, demand for long-term fixed-rate mortgages has collapsed due to economic headwinds including swap rates, government borrowing costs, and investor pressures. Overall, while mortgage rates may trend lower in the near term, long-term upward pressures and external economic factors continue to affect affordability and lending activity globally.