Mortgage Rates Surge, Slowing Spring Housing Market

0:00It's March 26, I'm Cory with the story, and this is Canada News Today, local news powered by AI. US mortgage rates have jumped to their highest level in more than 6 months, hitting home buyers right in the peak spring season. The average 30-year fixed rate climbed to 6.38% this week, up from 6.22% last week. That's the biggest it's been since early September. Meanwhile, 15-year fixed rates also rose, now averaging 5.75% compared to 5.54% a week ago. These increases tie closely to the 10-year treasury yield, which pushed up to 4.39% amid higher oil prices in inflation. Worry's. For home shoppers, this means hundreds more dollars each month on a loan, squeezing what they can afford. The housing market has stayed sluggish since rates started rising in 2022, with sales near 30-year lows and little change last year. Applications for mortgages dropped 10.5% last week, hitting both purchases and refinances.

1:02The Federal Reserve held short-term rates steady, amid economic uncertainty, which could keep long-term rates elevated longer. Even though rates are still below last year's levels, this recent uptake is making many buyers hesitate, just as selling picks up.