US Mortgage Rates Surge to 7.49% as Treasury Yields Hit Multi-Year Highs

Key Facts

1The average 30-year fixed-rate mortgage jumped 19 basis points to 7.49%, the highest level since November 2023.

2US 10-year Treasury yields hit 5.34%, driven by inflation fears and geopolitical tensions.

The average 30-year fixed-rate mortgage in the United States jumped 19 basis points to 7.49%, marking its highest level since November 2023. Reports citing data for the week ended October 2 indicate that this surge follows US 10-year Treasury yields reaching 5.34%.

The increase in borrowing costs is driven by inflation fears linked to oil prices sustained above $100 and ongoing geopolitical tensions. According to facts reported by ZeroHedge, 10-year yields have reached levels not seen since 2002, causing agency mortgage-backed securities to underperform Treasuries throughout September.