30-Year Fixed Mortgage Rate Surpasses 7% Amid Rising Treasury Yields
The average rate on a 30-year fixed mortgage rose to 7.07% on Thursday, its highest level since May 2025, as Treasury yields and oil prices increased.
The average rate for a 30-year fixed mortgage climbed to 7.07% on Thursday, marking the first time it has exceeded 7% since May 2025, according to Mortgage News Daily. The increase of 10 basis points followed a rise in the yield on the U.S. 10-year Treasury, which was boosted by higher oil prices.
Mortgage rates have been trending upward since the start of the conflict in Iran, after falling to a low of 5.99% just before the war began. For a buyer of a $430,000 home with a 20% down payment, the monthly principal and interest payment is now about $244 higher than at the end of February.
Homebuilder stocks fell on Thursday after a report showed existing home sales declining while home prices continued to rise, despite an increase in housing inventory.
"It's been a rough couple of days for the bond market," said Matthew Graham, chief operating officer at Mortgage News Daily. "Yesterday, it was Treasury Secretary Bessent and the reaction to the Treasury buyback announcement. Today it is an overnight surge in oil prices and a lackluster reaction to the Producer Price Index (PPI)."