30-Year Fixed Mortgage Rate Rises Sharply to 7.45%
The average rate for a 30-year fixed mortgage rose sharply on Thursday, reaching 7.45%, according to Mortgage News Daily. This increase followed rising bond yields and was driven by factors including Federal Reserve comments, higher oil prices, and stronger economic data since September 10th when the rate first crossed 7%. The rise marked a jump of 19 basis points from the previous day's level. The mortgage rates have been on an upward trend since early February, with a low point at 5.99%, before rising again in March due to geopolitical tensions and further increasing after the Fed raised its benchmark rate in September. The housing market continues to face challenges such as high home prices, weak consumer confidence, and limited affordable supply. The afternoon's bond selloff was described by Matthew Graham of Mortgage News Daily as puzzling without an obvious catalyst. He noted that while morning moves had clear reasons, the afternoon’s activity lacked a straightforward explanation.
Topics: bond yields Fed policy housing market mortgage rates