30-Year Mortgage Rate Tops 7% for First Time in 20 Months as 10-Year Yield Hits 5.2%
Updated
Updated · PBS NewsHour · Sep 29
30-Year Mortgage Rate Tops 7% for First Time in 20 Months as 10-Year Yield Hits 5.2%
3 articles · Updated · PBS NewsHour · Sep 29
Summary
Freddie Mac’s average 30-year mortgage rate rose to 7.03%, with Bankrate putting daily quotes at 7.2%—the first move above 7% in 20 months.
A $250,000 mortgage now costs about $1,800 more per year than at 6.3% a year ago, pricing out some buyers and prompting builders such as Lennar and D.R. Horton to expect weaker demand.
Treasury yields are driving the jump: the 10-year note hit 5.2%, its highest since January 2002, as markets absorb heavy federal borrowing, persistent inflation fears and expectations of further Fed tightening.
Analysts also point to long-dated borrowing by AI-linked hyperscalers, higher oil prices tied to the Iran war and concern over U.S. fiscal credibility, all of which could keep borrowing costs elevated across the economy.