30-Year Fixed Mortgage Rate Climbs to 7.45% Amid Treasury Yield Surge
The average rate on a 30-year fixed mortgage rose to 7.45% on Thursday, its highest level since April 2024, as 10-year Treasury yields increased.
Mortgage rates jumped on Thursday, with the average 30-year fixed mortgage reaching 7.45%, according to Mortgage News Daily. The increase followed a rise in 10-year Treasury yields, prompting the daily survey to be updated later in the day. The rate had been 7.26% the previous day, marking a 19-basis-point gain.
Matthew Graham, chief operating officer of Mortgage News Daily, noted that the 7% threshold was first breached on September 10 after inflation data heightened expectations of another Federal Reserve rate hike. He attributed the recent upward pressure to a mix of Fed commentary, higher oil prices and stronger economic data.
The 30-year fixed rate fell to as low as 5.99% at the end of February but began climbing when geopolitical tensions escalated and again in early September after the Fed raised its benchmark rate. Mortgage rates generally track the yield on the 10-year U.S. Treasury.
The rise occurs as the housing market contends with elevated home prices, low consumer confidence and limited affordable inventory. Graham said there was no clear catalyst for the afternoon bond sell-off, describing the market move as difficult to explain.