Mortgage rates climb to 14-month high as Fed decision looms

Freddie Mac reports the 30-year fixed mortgage rate at 6.71%, the highest in about 14 months, with the 15-year fixed at 6.04%, signaling ongoing strain on housing affordability as rates push higher. The rise is driven by a mix of inflation pressures, expectations about Federal Reserve policy, and the trajectory of the 10-year Treasury yield, which hovered around 4.74%. Analysts point to multifaceted headwinds, including widening fiscal deficits, a surge in Treasury issuance, heavy capital demand from AI infrastructure projects, and renewed U.S.-Iran tensions that have boosted oil prices and inflation concerns. These higher borrowing costs are translating to larger monthly payments and can prompt homebuyers to delay purchases, contributing to a slower housing market this year. Market watchers also note that the path forward could hinge on upcoming Fed decisions, with rate-change odds appearing volatile and potentially tilting on signals about inflation and growth. The convergence of geopolitical risk, energy prices, and big-budget investment in technology underscores why mortgage rates have stayed elevated across multiple articles.