The average rate on the 30-year fixed mortgage came in at 7.28% this week, up from 7.03% the previous week, according to data released on the first by the Federal Home Loan Mortgage Corporation, Freddie Mac, reaching its highest level in about three years. The weekly increase was the largest in roughly four years. The surge in Treasury yields is behind the move, adding further headwinds for would-be homebuyers. Mortgage rates track closely with the US 10-year Treasury yield, which this week reached its highest level in nearly a quarter of a century. Mortgage rates published by the Mortgage Bankers Association on September 30 showed a similar trend, and also indicated that mortgage applications fell again in response to higher rates. The rate on the 30-year fixed mortgage has risen by more than 1.2 percentage points over the seven months since the United States and Israel began strikes on Iran. Bob Broeksmit, president and chief executive officer of the Mortgage Bankers Association, said in a statement that mortgage rates have risen for six straight weeks and reached their highest level in about three years, adding that home affordability and borrower demand have weakened in recent weeks as the high-rate environment continues to squeeze both prospective buyers and homeowners considering refinancing.
Freddie MacFreddie Mac reported the 30-year fixed mortgage rate rose to 7.28%, its highest in about three years, tracking the surge in Treasury yields.
Treasury yields surged to a near-quarter-century high, driving the 30-year mortgage rate to 7.28%.
