U.S. Mortgage Rates Rise Above 6.8% Amid Inventory, Treasury Yield Shifts

Mortgage rates in the United States have been steadily rising, influenced by factors such as increased housing inventory nationally and bond market fluctuations linked to congressional tax bill deliberations. The average 30-year fixed mortgage rate recently climbed to around 6.86% to 7.10%, nearing a one-year high, while 15-year fixed rates hover near 6.10%, making home buying less affordable overall. However, Long Island experiences a unique challenge with persistently low housing inventory despite high mortgage rates, leading to fewer home sales and a cautious approach among buyers. The bond market's reaction to potential increases in the federal deficit from tax legislation has contributed to mortgage rate volatility, suggesting rates will remain elevated in the near term. Despite high rates, mortgage options remain available for borrowers with bad credit, although interest rates for these loans tend to be higher. Buyers are advised to shop around among multiple lenders to find competitive rates amid the fluctuating market conditions.