Mortgage rates hit 6.46% average

Bankrate said on May 13 that the average U.S. 30-year fixed mortgage rate rose to 6.46%, up from 6.43% a week earlier, as borrowing costs stayed elevated. The increase put rates at their highest level in weeks, according to reports from CNBC and HousingWire, which tied the move to hotter inflation readings and rising bond yields. (bankrate.com) Mortgage demand did not fall back in the latest weekly data, with the Mortgage Bankers Association reporting gains in both total and purchase applications. (housingwire.com) The latest rate moves arrive in a housing market where affordability remains stretched. Bankrate calculated that, using a 20% down payment and a 6.46% mortgage rate, the monthly principal-and-interest payment on the median existing-home price would be about $2,103. Bankrate also cited the National Association of Realtors’ April median existing-home sale price of $417,700 and the U.S. Department of Housing and Urban Development’s 2026 median family income estimate of $106,800. ### How high are mortgage rates right now? Bankrate’s May 13 lender survey put the average 30-year fixed mortgage at 6.46%, compared with 6.34% four weeks earlier and 6.88% a year earlier. (bankrate.com) The same survey showed the average 15-year fixed rate at 5.75% and the average 30-year jumbo rate at 6.54%. HousingWire reported that rates for 30-year conforming loans stood at 6.49% on Tuesday, up 5 basis points from a week earlier. CNBC said mortgage rates had climbed to the highest level since March after hotter-than-expected inflation reports. (bankrate.com) ### What pushed rates higher this week? Bankrate said rising inflation was the main driver, citing an April consumer price index increase of 3.8% from a year earlier, above the Federal Reserve’s 2% target. The outlet also said oil prices had risen as conflict involving Iran kept energy markets under pressure. (bankrate.com) CNBC reported that two hotter-than-expected inflation reports pushed mortgage rates higher by lifting Treasury yields, which heavily influence home-loan pricing. That link matters because mortgage rates do not move in lockstep with the Fed’s benchmark rate; they tend to track longer-dated bond yields and investor expectations for inflation. (housingwire.com) ### Are buyers still applying for mortgages? The Mortgage Bankers Association’s weekly survey showed total mortgage application volume rose 1.7% in the week ending May 8. Purchase applications increased 4%, according to HousingWire’s report on the data, even as the average contract rate for a 30-year fixed mortgage reached 6.46%. (bankrate.com) CNBC separately reported that stronger homebuyer demand kept applications in positive territory despite the latest increase in rates. That suggests some buyers are still moving ahead during the spring market, even with financing costs near the upper end of this year’s range. (cnbc.com) ### Why are some borrowers talking about 3% mortgages? ABC10 reported on May 12 that some buyers are getting mortgage rates near 3% by assuming an existing homeowner’s loan rather than taking out a new mortgage at current market rates. The report said the strategy is most common with certain government-backed loans and can produce large savings when the seller locked in financing during the ultra-low-rate period. (housingwire.com) ABC10 also said the process comes with hurdles. (cnbc.com) Buyers still have to qualify with the lender, cover the gap between the home’s sale price and the remaining mortgage balance, and navigate a process that can take longer than a standard closing. ### What does this mean for monthly payments? Bankrate said a borrower financing 80% of a $417,700 home at 6.46% would face a monthly principal-and-interest payment of about $2,103. That figure does not include property taxes, homeowners insurance, mortgage insurance or homeowners association fees, all of which can raise the total monthly cost. (abc10.com) The same Bankrate analysis said that payment equals about 24% of the typical family’s monthly income using HUD’s 2026 income estimate. Bankrate also noted that home prices have begun to fall in many formerly hot markets, citing Zillow and the S&P CoreLogic Case-Shiller index. (abc10.com) ### What should borrowers watch next? Freddie Mac typically releases its Primary Mortgage Market Survey on Thursdays, and the next update is due May 15. That survey will offer another widely watched reading on whether this week’s move above 6.4% holds or extends. (bankrate.com)