Mortgage rates have increased for the seventh consecutive week, according to Freddie Mac's latest Primary Mortgage Market Survey released on Thursday. The average rate on the benchmark 30-year fixed mortgage rose to 7.4%, up from 7.28% the previous week. This marks a significant rise compared to the 6.3% average rate recorded a year ago [1].
The average rate on a 15-year fixed mortgage also climbed, reaching 6.73% from last week's 6.6% [1]. Joel Berner, senior economist at Realtor.com, attributed the increase to continued upward pressure from the 10-year Treasury yield, which averaged 5.28% this week—9 basis points higher than the previous week. Berner cited a combination of inflation expectations, a broad bond market selloff, and rising fiscal deficits requiring new debt issuance as factors pushing bond yields and, consequently, mortgage rates higher [1].
The sustained rise in mortgage rates is squeezing homebuyers, making home purchases more expensive and potentially dampening housing market activity [1].
CONCLUSION
Mortgage rates have reached their highest level in over a year, driven by rising Treasury yields and broader economic pressures. This persistent increase is likely to further challenge homebuyers and could have a significant impact on the housing market.