30-Year Mortgage Rate Spikes to 7.45%, Highest Since April 2024
The benchmark 30-year fixed mortgage rate surged sharply Thursday, reaching 7.45% as bond markets sold off and yields climbed.
The 30-year fixed mortgage rate jumped to 7.45% on Thursday, marking its highest level since April 2024, as a broad selloff in the bond market pushed yields sharply higher and squeezed borrowing costs for American homebuyers.
The surge reflects intensifying pressure in the bond market, where rising yields directly translate into higher mortgage rates. When investors sell bonds, prices fall and yields climb — a dynamic that has repeatedly rattled the housing market over the past two years as the Federal Reserve battled inflation.
Read more Bank of England Holds Rates Steady Despite UK Inflation Surge →
For prospective buyers already grappling with elevated home prices and tight inventory, Thursday's rate spike adds another significant hurdle. A 7.45% rate on a 30-year loan substantially increases monthly payments compared to the sub-7% environment many buyers had hoped would return as inflation cooled.
The move back toward multi-month highs underscores how sensitive the housing market remains to shifts in Treasury markets and broader investor sentiment. Any sustained increase in long-term yields tends to have an outsized impact on affordability, potentially sidelining additional buyers and further slowing transaction volume in an already strained market.
Continue reading at US Top News and Analysis.
