U.S. Mortgage Rates Hit Highest Level Since July

The average long-term U.S. mortgage rate has increased for the fourth consecutive week, reaching 6.93%, the highest since July. This rise reflects climbing bond yields, particularly the 10-year Treasury yield, which has surged from 3.62% in mid-September to 4.66% currently. The combination of elevated mortgage rates and rising home prices is making homeownership increasingly unattainable for many potential buyers. Despite a slight uptick in sales of previously occupied homes, the housing market is still on track for its worst year since 1995. The Federal Reserve's recent signal to reduce rate cuts is attributed to persistent inflation above their 2% target, despite a recent decrease from mid-2022 peaks. The average rate for a 15-year fixed mortgage also rose to 6.14%, further complicating refinancing efforts for current homeowners.