US 30-year mortgage rate hits highest in nearly three years
Yahoo Finance • • business
Key Points:
- The average 30-year fixed-rate mortgage in the US rose to 7.49% last week, the highest level since November 2023, increasing borrowing costs for homebuyers ahead of the November elections.
- Mortgage rates are climbing due to a surge in the 10-year Treasury yield, which reached a 24-year high amid inflation concerns driven by rising oil prices and strong US economic growth.
- Inflation remains above the Federal Reserve's 2% target, hitting 3.4% in August, and the Fed is expected to raise interest rates again before the end of the year.
- Mortgage loan applications fell 4.2% last week, with refinancing applications dropping sharply, as higher borrowing costs discourage homeowners and potential buyers.
- The rise in borrowing costs and inflation is contributing to worsening housing affordability and influencing voter concerns ahead of the upcoming congressional elections.
