Mortgage rates in US rise to 6.66%, highest level in a year

The U.S. 30-year fixed mortgage rate has climbed to 6.66%, marking its highest point since July 2025, according to Bloomberg Markets. This increase is attributed to a rise in long-term Treasury yields, with the 10-year yield reaching mid-4% and the 30-year yield surpassing 5%. The surge in mortgage rates coincides with renewed concerns over inflation, as Treasury yields have been on the rise in recent weeks. The development is seen as indicative of tightening financial conditions and could impact Federal Reserve decisions in the coming months. The current pricing in prediction markets suggests that the likelihood of the Federal Reserve maintaining a “Pause-Pause-Pause” stance over its next three meetings has decreased. The market appears to interpret the rise in mortgage rates as consistent with scenarios where the Fed may opt to maintain or even increase interest rates to counter inflationary pressures. This has led to fluctuations in market odds regarding future Fed decisions. Key Takeaways Markets appear to interpret the mortgage rate increase as indicative of tightening financial conditions. The rise to a 12-month high in mortgage rates suggests increased inflationary pressures...