US Mortgage Rates Hit 7.28%, Driving Buyers Toward Riskier ARMs
Updated
Updated · The New York Times · Oct 1
US Mortgage Rates Hit 7.28%, Driving Buyers Toward Riskier ARMs
3 articles · Updated · The New York Times · Oct 1
Summary
The average US 30-year fixed mortgage rose to 7.28% this week from 7.03%, the highest since November 2023 and a sharp enough jump to push more buyers toward adjustable-rate loans.
Mortgage rates had been below 6% in late February, but climbed after the Feb. 28 US-Israel attack on Iran lifted energy costs, fueled inflation fears and sent the 10-year Treasury yield to its highest since 2002.
That Treasury surge matters because the 10-year yield anchors mortgage pricing, making this week's increase in home-loan rates the biggest since October 2022.
ARMs can run about 1 percentage point below fixed loans, potentially saving buyers thousands of dollars a year, but they also expose borrowers to higher payments if rates are still rising when the loans reset.