Category: Business Wires

The average long-term U.S. mortgage rate rose for the fourth consecutive week to its highest level in a year, another setback for prospective homebuyers hoping for a break from elevated home loan borrowing costs.

The benchmark 30-year fixed rate mortgage rate rose to 6.66% from 6.58% last week, mortgage buyer Freddie Mac said Thursday. One year ago, the average rate was 6.72%.

Higher mortgage rates can add hundreds of dollars a month in costs for borrowers, limiting homebuyers’ purchasing power. As rates rise, that can lead prospective home shoppers to delay buying a home, one reason U.S. home sales have been sluggish this year.

Borrowing costs on 15-year fixed-rate mortgages, often sought by borrowers refinancing a home loan, also rose this week. That average rate increased to 6.04% from 5.96% last week. A year ago, it was at 5.85%, Freddie Mac said.

Mortgage rates are influenced by several factors, from the Federal Reserve’s interest rate policy decisions to bond market investors’ expectations for the economy and inflation. They generally follow the trajectory of the 10-year Treasury yield, which lenders use as a guide to pricing home loans.

Rates have been mostly rising this year as the Iran war has driven crude oil prices sharply higher, fueling expectations of hotter inflation. That’s pushed up long-term bond yields relative to where they were before the conflict began in late February, causing mortgage rates to trend higher.

The 10-year Treasury yield was 4.66% at midday Thursday on the bond market. It was just 3.97% in late February, before the war broke out.

The average rate on a 30-year mortgage is now the highest it’s been since July 31, 2025, when it was at 6.72%. As recently as late February, the average rate dropped slightly below 6% for the first time since late 2022.

The latest increase in mortgage rates comes a day after the Federal Reserve left its key interest rate unchanged as it wrestles with how to tame stubbornly high inflation, which has been stuck above the central bank’s 2% target for more than five years.

During the central bank’s two-day monetary policy meeting this week, three regional Fed bank presidents dissented in favor of higher rates to combat high prices.

That’s a signal that Fed members are no longer in lockstep on inflation and that their next move is not going to be a rate cut, said Anthony Smith, senior economist at Realtor.com.

“With the Fed signaling that its next move is more likely a hike than a cut, near-term rate relief looks unlikely,” Smith said. “Because oil remains the primary channel through which the Iran conflict feeds inflation, a de-escalation and a reopening of the Strait of Hormuz remains the clearest path back toward lower rates.”

The central bank doesn’t set mortgage rates, but its decisions to raise or lower its short-term rate are watched closely by bond investors and can ultimately affect the yield on 10-year Treasurys.

While average long-term mortgage rates remain lower than they were at this time last year, their upward trajectory has weighed on home sales this year. Seasonally adjusted sales of previously occupied U.S. homes were up 0.7% from January to June compared with the same period last year, but they’re still hovering close to a 4-million annual pace far short of the historic norm that is closer to 5.2-million.

The trend has extended the national housing market slump that began in 2022, when mortgage rates began to climb from pandemic-era lows. Sales of previously occupied U.S. homes were essentially flat last year, stuck at a 30-year low.

The latest data on mortgage applications show that the upward trend in mortgage rates has given some would-be homebuyers reason to pause.

Mortgage applications, which include loans to buy a home or refinance an existing mortgage, fell 6.4% last week from the previous week, according to the Mortgage Bankers Association.

“While incoming economic data will continue to shape the outlook for interest rates, elevated borrowing costs remain a challenge this summer for many prospective homebuyers,” said MBA CEO Bob Broeksmit.

NEW YORK — Oil prices got back to jumping on Wednesday, while sinking technology stocks dragged Wall Street lower amid uncertainty about what the Federal Reserve will do to get high inflation under control.

The S&P 500 fell 1.5% after swinging sharply between gains and losses in the last hour of trading. The Dow Jones Industrial Average dropped 1,153 points, or 2.2%, and the Nasdaq composite slumped 1.7% to fall 9.8% below its record set last month.

The action was more decisive in the oil market, where the price of Brent crude leaped 7.3% to settle at $88.09 per barrel after fighting resumed in the war with Iran and raised worries about the global flow of oil.

Brent oil’s price had swung as low as $72 early this month and as high as $102 last week on uncertainty about whether the United States and Iran could reach a deal to allow oil tankers to move freely again from the Middle East to customers worldwide.

The swings have raised worries that inflation will reaccelerate, and traders came into the day betting on a roughly 34% probability that the Fed would raise its main interest rate in the afternoon, according to data from CME Group.

Higher rates can keep a lid on inflation, but they can also slow the economy and undercut prices for stocks and other investments.

Fed officials instead voted to keep the federal funds rate steady, though three members of the policymaking committee did want to raise rates. The Fed’s chairman, Kevin Warsh, implied the bond market may already be doing some of the work to restrain inflation, and he pointed to how yields have climbed since the central bank’s last meeting six weeks ago.

He reiterated his commitment to get inflation back to 2% following years of faster-than-hoped increases in prices, but he also stuck to his plan of giving financial markets fewer clues about what the Fed may do with interest rates in the near future.

With less guidance from the Fed, financial markets may be set for more volatile trading amid the uncertainty.

“Did the Fed take an explicit change in its policy rate today?” Warsh asked rhetorically in a news conference following the Fed’s decision. “No, but I think that’s the beginning of the story.”

Treasury yields swiveled up and down following the Fed’s decision and Warsh’s insistence on not guiding the market.

The yield on the two-year Treasury, which closely tracks expectations for Fed action, fell to 4.24% from 4.26% late Tuesday.

But the 10-year Treasury yield, which moves more with expectations for inflation and economic growth in upcoming years, went in the opposite direction. It jumped to 4.68% from 4.61% late Tuesday.

That’s up from 3.97% before the war with Iran sent oil prices much higher, and the increase has already sent long-term U.S. mortgage rates to their highest level in nearly a year.

Higher rates particularly hurt stocks seen as the most expensive, and scrutiny has already been rising on makers of computer chips and other winners of the frenzy around artificial-intelligence technology.

The recent surges for sellers of computer processors and memory are backed by real revenue and profits, but the exceptional growth won’t be sustainable if AI does not produce as much profit and productivity as hoped.

The skepticism has hit South Korea’s stock market in particular because it’s dominated by two tech giants, Samsung Electronics and SK Hynix. Seoul’s Kospi index tumbled 6% Wednesday, a day after it plunged 10.8%, and trimmed its gain for the year so far to 34.4%.

SK Hynix’s stock in Seoul dropped 9.6%. It reported record amounts of revenue and profit for a quarter thanks to strong demand because of AI. But its 257% growth in revenue still wasn’t enough to meet analysts’ expectations.

On Wall Street, Nvidia was the heaviest weight on the S&P 500 after the chip company fell 3.6%.

KLA Corp., whose products and services help make semiconductors, lost 10.8% even though it reported stronger-than-forecast profit and revenue for the latest quarter. Expectations were high after its stock surged nearly 150% in this year’s first six months.

On Tuesday, gains for stocks outside of AI helped offset weakness for tech companies. Analysts have been saying such a rotation in the market from AI to less-loved areas could be healthy, but the majority of U.S. stocks fell with tech on Wednesday.

Hims & Hers Health tumbled 14.7%, for example, after the Federal Trade Commission, Utah and California alleged it shared consumers’ sensitive health information about medical conditions with third-party advertising platforms despite claiming its services maintain consumers’ privacy. Hims & Hers said their lawsuit is contorting “the law to try to manufacture claims,” which it called baseless.

All told, the S&P 500 fell 112.63 points to 7,316.15. The Dow Jones Industrial Average dropped 1,153.18 to 51,594.14, and the Nasdaq composite sank 433.97 to 24,442.94.

In stock markets elsewhere around the world, indexes were mixed. Hong Kong’s Hang Seng rose 2%, and Japan’s Nikkei 225 fell 1.5% for two of the bigger moves.

NEW YORK — Most of Wall Street rose Tuesday, even as stocks of computer chipmakers continued to tumble worldwide. Oil prices, meanwhile, eased further from the two-month high they hit last week.

The S&P 500 added 0.2%, but the modest move masked big swings underneath the surface. The Dow Jones Industrial Average jumped 537 points, or 1%, while the Nasdaq composite slipped 0.2% after briefly dropping 9.3% below its record set last month.

The majority of the U.S. market rose after more companies delivered stronger profits for the spring than analysts expected. Coca-Cola climbed 5% after its revenue rose 7% despite what CEO Henrique Braun called “a dynamic consumer landscape.”

Sherwin-Williams rallied 8.3%, and Illinois Tool Works rose 3.6% after both likewise reported stronger earnings for the latest quarter than analysts expected. Stock prices generally follow the trend of corporate profits over the long term, and expectations are high for this most recent round of reports with the U.S. stock market still near its all-time high.

Such expectations are weighing particularly heavily on stocks of chipmakers and other companies that have been huge winners from the boom in artificial-intelligence technology.

Micron Technology’s stock came into the day having more than tripled for the year following gangbuster growth, for example. During the three months through May 28, its revenue more than quadrupled from a year earlier.

But worries are rising about whether such growth is sustainable. Big spenders on computer memory could pull back on investments if AI does not produce as much profit or productivity as promised. Lower-cost AI models from China could also mean less demand for memory and computing power than earlier expected.

Micron dropped 8.9% and was the heaviest weight on the S&P 500. Others also helping to keep the market in check were Advanced Micro Devices, down 8.1%, and Applied Materials, down 7.8%.

All told, the S&P 500 rose 15.60 points to 7,428.78. The Dow Jones Industrial Average jumped 537.24 to 52,747.32, and the Nasdaq composite fell 55.17 to 24,876.91.

The losses for chip stocks were even worse earlier in the day in other markets worldwide.

Sharp drops for SK Hynix and Samsung Electronics dragged South Korea’s Kospi index down 10.8%. The market’s losses were so big that trading was temporarily halted at times in Seoul.

“We believe the market was likely spooked by the progress of China’s chipmaking equipment capabilities, and was worried that this progress would threaten the competitive position of global chipmaking and chip equipment leaders,” said equity analyst Jing Jie Yu of Morningstar.

“That said, we believe the sell-off today is largely a knee-jerk reaction and overdone,” he said. The dominant position of global chipmaking leaders is unlikely to be threatened meaningfully, he said.

Several huge spenders on AI chips and data centers are scheduled to report their latest quarterly results this week, which could offer updates on how much they’re planning to invest. Meta Platforms and Microsoft are reporting on Wednesday, while Amazon is due on Thursday.

Because AI superstar stocks have grown so big, their movements carry more weight on the S&P 500 and other indexes than many other companies. But the broad U.S. market could hold up despite their swings if other, less-loved areas are able to keep rising. It’s a rotation that some strategists have suggested could be healthy for the overall stock market.

In the oil market, the price for a barrel of Brent crude to be delivered in October fell 4.4% to settle at $82.08.

It’s been falling since late last week, when the price for a barrel to be delivered in September briefly shot as high as $102.

Pushing up on prices have been worries that worsening fighting in the Middle East could slow the global flow of oil. On the other side, though, are hopes that the United States and Iran could still negotiate something to allow oil tankers to use the Strait of Hormuz to move crude.

Lower oil prices helped to ease Treasury yields in the bond market. The yield on the 10-year Treasury fell to 4.60% from 4.65% late Monday.

A weaker-than-expected reading on confidence among U.S. consumers also weighed on yields. Fewer consumers are saying they feel good about current business conditions, according to the latest survey released by the Conference Board Tuesday.

The drop in oil prices helped push traders to trim their bets that the Federal Reserve could announce a hike to interest rates following its latest meeting on Wednesday. They’re forecasting a 31.5% probability, down from more than 36% a day before, according to data from CME Group.

Higher rates could keep a lid on inflation, but they would also slow the economy by making it more expensive for U.S. households and businesses to borrow. Long-term mortgage rates have already hit their highest level in nearly a year, chilling the housing industry.

Stocks on Wall Street drifted to a mixed close Monday as oil prices fell after the U.S. and Iran paused their attacks while work resumed on restarting negotiations to end the war.

The S&P 500 rose less than 0.1% after spending much of the day bouncing between small gains and losses. The benchmark index was coming off two weekly losses in a row. The Dow Jones Industrial Average rose 0.5%, and the Nasdaq composite fell 0.2%, its fourth straight loss.

The three major stock indexes are on pace to close out this month in the red. It would be the second straight monthly loss for the S&P 500 and Nasdaq.

Oil prices reversed course from a week ago, when a sharp escalation in fighting between the U.S. and Iran worsened worries about global oil supplies. The price of Brent crude, the international standard, dropped 6.3% to settle at $85.87 a barrel for October delivery. Prices surged to over $100 a barrel last week before easing.

U.S. crude oil for September delivery fell 7.5% to settle at $82.61 a barrel.

The war between the U.S. and Iran has sharply curtailed, and at a times halted, traffic through the vital Strait of Hormuz. That has had a ripple effect throughout the world’s economy. Gasoline prices have surged and shipping costs for most goods are rising, with businesses typically passing those costs along to households.

Markets closed higher in Europe and Asia.

Bond yields fell. The yield on the 10-year Treasury fell to 4.65% from 4.69% late Friday.

Technology companies were behind much of the shifts in the market, with gains and declines for a mix of big companies resulting in uncertain trading.

Nvidia fell 5% and Micron Technology slumped 2.3%. At the same time, Microsoft rose 1.9% and Apple rose 1.2%. They are all among the most valuable companies in the world, and those huge valuations give them more influence over the direction of the broader market.

The mix of gains and losses from a variety of those companies had more impact in pushing and pulling the market, even as the majority of companies in the S&P 500 gained ground.

Communications company stocks were among the gainers Monday. Google parent Alphabet rose 2.1%, while Charter Communications jumped 6.7% and Comcast rose 2.3%.

Credit card issuers and payment processors also notched gains. American Express climbed 2.8%, Capital One Financial added 2.1%, Visa rose 1.9%, and rival Mastercard gained 2.2%.

In Asia, Chinese memory chipmaker CXMT soared in its debut in Shanghai. The company jumped to become China’s most valuable listed company with an estimated market capitalization of 3.3 trillion yuan (nearly $490 billion).

All told, the S&P 500 added 1.20 points to 7,413.18. The Dow gained 262.83 points to 52,210.08, and the Nasdaq dropped 43.74 points to 24,932.08.

Wall Street has a busy week ahead with several potentially mark-moving updates on the economy and company earnings. Reports are due out on consumer confidence Tuesday and inflation on Thursday.

“This is a week with more than its fair share of potential surprises, good and bad,” said Chris Larkin, managing director, trading and investing, at E-Trade from Morgan Stanley.

The big focus will be on the Federal Reserve, which will give an update Wednesday on its interest rate policy. The central bank has been grappling with the impact from rising inflation because of the ongoing U.S. war with Iran. It also has to contend with a fresh round of U.S.-imposed tariffs globally, which could further worsen inflation.

Wall Street anticipates a nearly 36% chance that the Fed will raise interest rates at its meeting this week. Higher rates can help cool inflation by making borrowing more expensive and slowing economic growth.

The central bank has been holding rates steady throughout the year as it monitors inflation’s direction and impact, but Wall Street expects at least one rate hike by the end of the year.

Stubbornly high inflation has been squeezing households and fuel costs have hit budgets and spending particularly hard. Gasoline costs are taking a bigger chunk out of household budgets, and that could mean tighter spending on other things like clothing and travel.

Investors are monitoring the latest round of corporate earnings for signs of consumer stress along with whether the yearlong jump in stock values throughout Wall Street is justified by profits and forecasts for profit growth.

Investors also have a heavy round of corporate earnings to review this week. Many of those reports could provide more clues into the health of different areas of the economy. Paint and coatings maker Sherwin-Williams, aircraft maker Boeing, and payments processor Visa will report their latest results on Tuesday.

Starbucks and Chipotle will report results on Wednesday.

Technology companies are being watched especially closely because their sharp gains throughout the year have been behind the Wall Street’s record run. Microsoft will report results Wednesday. Amazon, with its growing cloud services business and AI focus, will report results on Thursday, along with Apple.