Housing Shock: U.S. 30-Year Mortgage Rate Hits a 13-Month High

The starter-home story got more expensive again. Freddie Mac said this week the average 30-year fixed mortgage rose to about 6.71 percent, the highest reading in 13 months. For Legend Magazine readers, that decimal is the difference between a payment that fits and one that does not.

Why the rate moved

Mortgage rates follow the bond market more than any speech. A global bond sell-off, inflation fears, and energy-price risk have lifted long-term yields. When investors demand more to hold Treasuries, home-loan pricing follows. On a $400,000 loan, a climb toward 6.71 percent adds real money every month and thousands of dollars over the early years of the loan.

What to do this week

Shop more than one lender in the same week. Model a payment a quarter-point higher than the quote. Lock periods matter when headlines move daily. Sellers should stop pricing as if 2021 never ended. Legend Magazine is not calling a crash from one weekly print, but affordability is worse than it was a year ago for anyone who needs a 30-year loan.