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US 30-year mortgage rate tops 7%, hits 2-year high
Higher bond yields and a Federal Reserve rate hike are pushing borrowing costs up, with purchase applications down 1.5% last week, the Mortgage Bankers Association said.
- On Thursday, Freddie Mac reported the average 30-year fixed mortgage rate climbed to 7.03% this week, marking the fifth consecutive weekly increase and the highest level since January 16, 2025.
- Surging 10-year Treasury yields, which hit 5.11% on Wednesday, drove the increase as investors react to inflation and energy volatility stemming from the war in Iran.
- Borrowing costs are tightening housing affordability, prompting nearly 10% of borrowers to opt for adjustable-rate mortgages last week, while major homebuilders like Lennar face pressure from higher costs.
- Crossing the 7% threshold creates a "foreboding psychological barrier" for buyers, according to Bright MLS chief economist Lisa Sturtevant, slowing market activity across the United States.
- Federal Reserve policymakers signal potential future rate hikes as economists warn mortgage rates may remain elevated, though modest relief could arrive if inflation moderates by year-end.
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30-year mortgages in the United States reached an average rate of 7.03%, their highest level since January 2025.
30-year mortgage rates in the US reached 7.03 percent, the highest level since January 2025, according to Freddie Mac.The increase coincides with the rise in the Treasury bond and inflation, affecting the real estate market and home sales.
·Buenos Aires, Argentina
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Total News Sources175
Leaning Left35Leaning Right23Center78Last UpdatedBias Distribution57% Center
Bias Distribution
- 57% of the sources are Center
57% Center
L 26%
C 57%
R 17%
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