US 30-Year Fixed Mortgage Rates Rise to 7.30% Following Hot Inflation Data
After four consecutive weeks of declining interest rates, the average 30-year fixed mortgage rate rose by 12 basis points to 7.30% on Tuesday. This sudden reversal follows a monthly Consumer Price Index (CPI) report that showed higher-than-expected inflation across various sectors, signaling a more heated economy than analysts had anticipated. The spike in rates comes just as mortgage demand began to recover; last week saw a 6.2% increase in overall applications according to the Mortgage Bankers Association. While purchase applications rose by 8% over the previous week, they remain significantly lower on a year-over-year basis, reflecting the ongoing impact of high borrowing costs on the housing market.
Topics: CPI Federal Reserve housing market inflation mortgage rates