- Mortgage rates have increased for a fifth straight week, reaching 7.03% on Thursday, according to Freddie Mac.
- This is the first time Freddie Mac's weekly average has been above 7% since January 2025.
- Daily mortgage rates had already crossed 7% earlier this month and have kept climbing.
- The 10-year Treasury yield reached 5.18% in early trading, a level not seen in nearly 20 years.
- The yield on the 10-year note closed at 5.163%, the highest in 19 years, and the 30-year bond yield hit its highest since 2004.
- Oil prices rose to as much as $108 a barrel, contributing to the bond yield increases.
Freddie Mac's latest report reveals that the average 30-year mortgage rate has reached 7.03%, the highest since January 2025, following a fifth consecutive week of increases.12
This rise is attributed to escalating bond yields amid the ongoing war in Iran, which has heightened economic uncertainty.
As oil prices surged to $108 a barrel, the yield on the benchmark 10-year U.S. Treasury note climbed to 5.18%, a level not seen in nearly 20 years.46
In Utah, the average monthly mortgage payment of $3,669 is unaffordable for 91% of renters, according to the University of Utah's Kem C. Gardner Policy Institute.
Experts warn that crossing the 7% threshold could have a psychological impact on potential homebuyers, as the added costs of borrowing increase.
Jake Krimmel, a senior economist at Realtor.com, noted that mortgage rates are likely to continue rising, with home prices potentially following suit.
Mark Zandi, chief economist at Moody's Analytics, described the current economic situation as a 'noxious brew', exacerbated by inflation and a growing national debt that recently surpassed $40 trillion.
As the war in Iran continues, the economic landscape remains uncertain, with many Americans feeling the pinch of rising costs across various sectors, including housing and fuel.
“The 10-year Treasury yield hit 5.18% in early trading, a level not seen in nearly 20 years, as oil prices rose to $108 a barrel. In Utah, the average monthly mortgage payment of $3,669 is unaffordable for 91% of renters, per a University of Utah study.”
Deseret News
