US mortgage rates rise for fifth week, sending 30-year to 6.46%

[BOSTON] Mortgage rates in the US rose for a fifth straight week, dampening hopes for the key spring homebuying season. 

The average rate for 30-year, fixed loans was 6.46 per cent, the highest since early September and up from 6.38 per cent last week. 

The housing market is entering its traditional peak time of the year for transactions, but concerns about the economy threaten to hold back both buyers and sellers.

Spiking energy prices from the war in Iran have sparked inflation fears, while the growth of artificial intelligence stirs job insecurities. Home prices also remain out of reach for many Americans.  

Capital Economics downgraded its already bearish 2026 forecast for sales of previously owned homes, citing the recent jump in mortgage rates that’s been fanned by the war and higher yields for benchmark Treasury bonds.

That rise in loan costs has reduced purchasing power for new borrowers, who’d face significantly bigger monthly bills than they would have in late February, when rates dipped below 6 per cent. 

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“This fast-changing mortgage math, combined with general economic uncertainty, could keep more buyers on the sidelines as the typically busy spring market gets into full swing,” said Hannah Jones, senior economic research analyst for Realtor.com. BLOOMBERG