Mortgage Rates Top 7% for First Time in 1 Year as 10-Year Yield Nears 4.9%
Updated
Updated · Yahoo Finance · Sep 10
Mortgage Rates Top 7% for First Time in 1 Year as 10-Year Yield Nears 4.9%
3 articles · Updated · Yahoo Finance · Sep 10
Summary
Mortgage News Daily put the average mortgage rate at 7.07% on Thursday, up 10 basis points in a day and above 7% for the first time in more than a year.
The jump tracked a fresh bond selloff that pushed the 10-year Treasury yield up 8 basis points to above 4.9%, extending a rise of more than 12 basis points in less than a week.
Oil above $100 a barrel amid escalating US-Iran fighting and August producer prices up 0.4% reinforced inflation fears that investors say have been driving rates higher since late February.
Trump's pledge to send $5,000 to every US adult if Republicans keep Congress added to deficit worries, with the proposal potentially costing $1.3 trillion against a $40 trillion national debt.
Treasury buybacks failed to calm yields, while Freddie Mac's weekly survey through Wednesday still showed a smaller rise to 6.76% from 6.71%, underscoring how quickly borrowing costs are climbing.