China's Q2 Financial Institution Loan Growth Rate Drops to 5.5%, Hitting a New Record Low as Credit Demand Remains Sluggish

US 30-Year Mortgage Rate Rises Consecutively to 6.52%, Inflation and Deficit Concerns Push Up Homebuying Costs

According to the latest data, as of June 11, 2026 (Q2 2026), the US 30-year fixed mortgage rate reached 6.52%, higher than the previous observation of 6.48%. This reflects that since falling below 6% to a low of 5.98% in late February of this year, mortgage rates have shown a gradual upward trend for consecutive months, putting significant pressure on the burden of potential homebuyers. In terms of detailed performance, the 15-year fixed mortgage rate, which is highly correlated with the 30-year rate, also went up, climbing to 5.84%. However, according to data from the Mortgage Bankers Association (MBA), despite the overall rise in rates, recent mortgage application and refinancing demands temporarily rebounded due to occasional short-term rate pullbacks amid market volatility, highlighting that some buyers remain active. Exploring the drivers behind this data shift, experts point out that it was primarily caused by surging long-term US Treasury yields. Recent geopolitical tensions in the Middle East have pushed up international oil prices, leading to a high US May CPI of 4.2% and hindering the cooling of inflation. Furthermore, market concerns about the expanding US federal deficit and massive debt issuance have further pushed up the benchmark 10-year Treasury yield, causing mortgage pricing to remain high. Looking ahead, in the short term (1-2 months), due to unresolved inflationary pressure and persisting geopolitical variables, mortgage rates are expected to fluctuate at high levels above 6.5%. Some institutions even warn that if inflation continues to overheat, rates may risk approaching 7%. In the medium term (3-6 months), if Federal Reserve policies take effect and drive the economy to gradually cool down, institutions such as Fannie Mae expect mortgage rates to still have a chance of falling back below the 6% range before the end of the year. However, it is necessary to closely monitor the crowding-out effect of US Treasury debt issuance on market liquidity. Mortgage Rates - Freddie Mac Mortgage Rates Remain Above 6.5% As Inflation Spikes | Bankrate https://www.pbs.org/newshour/economy/u-s-mortgage-rates-are-staying-high-and-the-federal-reserve-can-do-little-about-it