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30-year fixed mortgage rate spikes Thursday to 7.45%
CNBC • • general
Key Points:
- Mortgage rates surged sharply on Thursday, with the average rate on the 30-year fixed mortgage reaching 7.45%, according to Mortgage News Daily, marking a 19 basis point increase from the previous day.
- The rise in rates was driven by a significant increase in the yield on the 10-year U.S. Treasury, which mortgage rates generally follow, and was influenced by factors such as Federal Reserve comments, higher oil prices, and stronger economic data.
- Mortgage rates have climbed from a low of 5.99% at the end of February, with notable increases starting around the war with Iran and accelerating after the Federal Reserve raised its benchmark rate in September.
- The housing market continues to face challenges including high home prices, weak consumer confidence, and a limited supply of affordable homes, which are compounded by rising mortgage costs.
- The afternoon bond selloff that contributed to the rate spike lacked a clear catalyst, with experts suggesting it was driven by heavy selling without an obvious underlying reason.
