Mortgage rates have risen in a matter of days as a sharp selloff in the bond market drives up borrowing costs.
Mortgage rates have risen in a matter of days, topping 7.5 percent as a sharp selloff in the bond market pushes up borrowing costs. The move reduces buying power and adds new pressure on buyers and agents moving deeper into the fall market.
Mortgage News Daily Reports Highest Average 30-Year Fixed Mortgage Rate at 7.58 percent on Tuesdayafter the rate hit 7.5% on Monday – its highest level since April 2024. Matthew Graham of Mortgage News Daily said in a Monday post that the recent rise cannot be explained by oil prices alone, but rather by a combination of strong economic data, expectations of renewed strength, and supply pressures on the Treasury and broader bond markets.
The latest decision comes less than a week later Freddie Mac reported that the average 30-year fixed mortgage rate rose above 7 percent for the first time since January 2025. Freddie’s weekly survey put the rate at 7.03 percent as of September 24, up from 6.95 percent the previous week and 6.30 percent a year earlier.
Mortgage rates have been climbing alongside Treasury yields, which have also risen sharply in recent days amid lingering inflation concerns, heavy federal borrowing and uncertainty over the conflict with Iran.
The latest increase represents a sharp reversal from the start of this year. Mortgage rates were around 6% in late February before climbing in the spring and summer. Lawrence Yun, chief economist for the National Association of Realtors, said earlier this month that buyers should prepare for 7 percent to become the “new normal” as inflation and higher long-term borrowing costs persist.
For agents and their clients, a new increase could further erode purchasing power as fall approaches. Lisa Sturtevant, Bright MLS Chief Economist said Inman last week that an increase from 6.5 percent to 7 percent adds more than $125 to the typical monthly payment for a median-priced home in the United States, potentially forcing some buyers to compromise on location or square footage — or to suspend their search altogether.
The timing also comes as the new home market had begun to show signs of improvement, with sales of newly constructed homes in August. increasing from July. Higher financing costs could put renewed pressure on buyers just as builders and agents head into the fall selling season.
Email AJ LaTrace
Gn bussni
