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Mortgage rates continued to increase in June due to high inflation and a stronger-than-expected labor market, according to the NAHB’s Eye on Housing. The 30-year fixed-rate mortgage averaged 6.49% in June, up 8 basis points (bps) over May. Since the conflict in the Middle East began, the 30-year mortgage rate has increased by 44 basis points. The average 15-year rate averaged 5.82% in June, up 8 bps from May and up 39 basis points since the end of February. Both rates still remain lower than a year ago by 33 bps and 13 bps, respectively.
The 10-year Treasury yield held steady at an average of 4.48% in June. The 10-year yield surpassed 4.5% in the second week of the month following reports of persistent high inflation and a surprisingly resilient labor market. Furthermore, the latest Federal Open Market Committee (FOMC) meeting revealed that nine out of 18 Fed officials indicated at least one rate increase within the year.
Despite these pressures, the 10-year Treasury yield eased later in June, ending the month at around 4.44%, as the United States and Iran reached a preliminary agreement.
