US mortgage rates hit nine-month high at 6.65 percent
The average 30-year fixed-rate mortgage rose to 6.65 percent last week as energy costs and inflation concerns drove benchmark Treasury yields higher. This increase has pushed mortgage applications to their lowest levels since last summer while aggravating housing affordability and supply constraints.
The average 30-year fixed-rate mortgage in the United States rose 9 basis points to 6.65% for the week ended May 22. This marks a nine-month high and the lowest application volume since last summer. Higher borrowing costs and a persistent shortage of housing inventory are further eroding affordability for prospective buyers.
### Energy Costs and Geopolitical Tensions Drive Yields Benchmark U.S. Treasury yields climbed as West Texas Oil prices remained elevated following military actions involving Israel and Iran. These energy costs pushed April consumer prices up 3.8% from a year earlier, a sharp increase from the 2.9% inflation rate recorded last August.
