Washington, D.C.—Mortgage rates increased in April as ceasefire negotiations remained unresolved. According to Freddie Mac, the average 30-year fixed-rate mortgage reached 6.34% last month. That marked a 16-basis-point increase from March.
The average 15-year fixed-rate mortgage also increased, rising 13 basis points to 5.69%. Despite the recent gains, both mortgage rates remained below year-ago levels by 39 basis points and 21 basis points, respectively.
The 10-year Treasury yield averaged 4.31% in April. That was up seven basis points from March. The yield remains a key benchmark for long-term borrowing costs.
Energy prices continue driving inflation
Ongoing blockades in the Strait of Hormuz kept oil prices above $100 per barrel during the month. Higher energy costs continued to pressure inflation, which climbed to 3.3% and approached a two-year high.
Energy-related categories led the increase. Fuel oil prices rose 30.7%, while gasoline prices increased 21.2% in March.
At its latest meeting, the Federal Reserve kept the federal funds rate unchanged at 3.5% to 3.75%. The central bank cited elevated inflation and continued economic expansion.