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2026-05-28 17:48:52
[US Mortgage Rates Surge to Nine-Month High of 6.65%, Refinancing Plummets, Markets Bet Against Year-End Rate Hike] ⑴ The average interest rate on the most popular home loans in the US rose to a nine-month high last week. As of the week ending May 22, the average rate on a 30-year fixed-rate mortgage rose 9 basis points to 6.65%, a level last reached in August 2025. ⑵ The Iran war has led to persistently high oil prices, exacerbating inflation concerns and pushing up benchmark US Treasury yields. Data from the Mortgage Bankers Association shows that mortgage applications fell 8.5% from the previous week, mainly dragged down by declining refinancing demand. ⑶ This rise in mortgage rates comes as Kevin Warsh succeeds Jerome Powell as the new chairman of the Federal Reserve. President Trump had previously tirelessly criticized Powell for keeping interest rates too high. Hours after Warsh was sworn in at the White House, Trump indicated he expected interest rates to fall. ⑷ However, financial markets are currently betting on the possibility of a Fed rate hike before the end of the year. Mortgage rates are loosely correlated with the Federal Reserve's short-term policy rates, but more closely follow the trend of 10-year Treasury yields.
