Long-term rates keep pressure on borrowers despite historical context

Yields on 30-year U.S. Treasury bonds have reached their highest levels since 2001, adding pressure on large borrowers, investors and would-be home buyers. Rising long-term Treasury yields typically push mortgage rates higher.

Freddie Mac’s latest average 30-year mortgage rate was 6.67%, below the recent peak of 7.79% in October 2023. The national average 30-year mortgage rate peaked at 18.63% in October 1981, according to Federal Reserve data cited in the material.

Higher borrowing costs are weighing on household finances, with the average car loan now $785 a month and lasting almost six years. The material also noted a slow U.S. housing market and areas where sellers are asking for less than they paid for properties.

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