Mortgage rates cross 7 percent threshold
U.S. mortgage rates have crossed the 7% threshold for the first time since May 2025, with the 30-year average hitting 6.76% in the latest Freddie Mac report. This surge, fueled by rising Treasury yields and Fed rate hike expectations, has pushed existing home sales to a 14-month low despite limited inventory propping up prices.
Freddie Mac data confirms the 30-year fixed rate has climbed to 6.76%, marking a third consecutive weekly increase and the highest level since late June 2025. This upward trend is being driven by a spike in the 10-year Treasury yield, which reached 4.92% on Thursday amid persistent inflation concerns and geopolitical tensions.
Source: GN auto markets/bonds: interest ratesGN markets/inflation (en-US) reports that hot producer price index data and market fears over proposed $5,000 stimulus checks have further accelerated the rate climb, while existing home sales hit a 14-month low. Despite the affordability crunch, persistent housing shortages in desirable areas are keeping prices elevated as dual-income buyers continue to compete for inventory.
Source: GN markets/inflation (en-US)According to GN auto markets/bonds: treasury yields, the rate spike was triggered by a smaller-than-expected Treasury buyback announcement, which failed to provide the anticipated demand support for government bonds. This event pushed the 30-year fixed rate to its highest level since May 2025, extending a months-long trend driven by persistent inflation and deficit concerns.
Source: GN auto markets/bonds: treasury yieldsU.S. mortgage rates surpassed the 7% mark for the first time in over a year on Thursday.
Source: GN auto markets/bonds: interest rates
