Updated
Updated · Yahoo Finance · Sep 17
30-Year Mortgage Rate Falls to 7.01% as 10-Year Treasury Yield Drops to 4.94%
Updated
Updated · Yahoo Finance · Sep 17

30-Year Mortgage Rate Falls to 7.01% as 10-Year Treasury Yield Drops to 4.94%

2 articles · Updated · Yahoo Finance · Sep 17

Summary

  • 30-year fixed purchase mortgage rates eased to 7.01% on Thursday, with 30-year refinance rates at 7.00%, extending a pullback after rates recently hit 7.24%.
  • The decline followed a 6-basis-point drop in the 10-year Treasury yield to 4.94% after the Fed raised its benchmark rate by 25 basis points and investors took the move as a sign inflation may be brought under control.
  • Freddie Mac's weekly survey still showed average mortgage rates at 6.95% through Wednesday, up sharply from 6.76% a week earlier, reflecting the bond-market selloff that preceded the Fed decision.
  • Zillow's chief economist said the hike could ultimately help housing by restoring confidence on inflation and setting up lower mortgage rates in 2027, even though Fed tightening usually pressures home demand.

Insights

If Fed rate hikes aren't directly driving mortgage costs, what hidden bond market forces are really controlling your housing fate?
Will Middle East oil disruptions and rising Treasury yields permanently lock homebuyers out of affordable mortgages this year?
Could the surprising resilience of the US economy actually be the exact trigger that keeps borrowing costs painfully high through 2027?