Mortgage Rates Rise as Treasury Yields Climb on Lower Inflation

On March 14, 2025, mortgage rates in the United States saw a modest increase, continuing a recent upward trajectory. The 30-year fixed-rate mortgage rose to 6.853%, an increase of 0.029 percentage points, while the 15-year fixed-rate mortgage averaged 6.234%, up by 0.056 percentage points. This slight uptick was driven by higher Treasury yields, which responded to lower-than-expected inflation data.

The benchmark rate survey for the week ending March 13, 2025, also reflected this trend. The average rate for a 30-year fixed-rate mortgage increased to 6.65%, a rise of 0.02 percentage points, and the 15-year fixed-rate mortgage rate climbed to 5.80%, up by 0.01 percentage points. This marks the first increase in the benchmark rate in two months, although rates remain lower compared to the same period last year.

The recent fluctuations in mortgage rates are influenced by various economic factors, including concerns over the health of the U.S. economy and the potential for a recession. The consumer price index, released earlier in the week, showed that inflation was lower than expected in February, providing some relief to markets amidst uncertainty over the impact of tariffs on future price growth. However, inflation remains above the Federal Reserve's target range of 2%, continuing to influence mortgage rate movements.

For prospective homebuyers, the slight increase in mortgage rates may present a challenge, as higher rates can affect the affordability of home loans. However, experts note that the recent downward trend in mortgage rates has created opportunities for those feeling financially secure and ready to enter the market. The dip in rates, although modest, can make homeownership more accessible for some buyers.

In summary, mortgage rates have crept up slightly, with both the 30-year and 15-year fixed-rate mortgages experiencing marginal increases. The rise in Treasury yields, driven by lower-than-expected inflation, has contributed to this upward movement. Despite the recent increase, mortgage rates remain lower than they were a year ago, offering some relief to potential homebuyers. The economic landscape, including concerns over a potential recession and the impact of tariffs, continues to influence mortgage rate trends.