Mortgage rates surge to highest level since July
Mortgage rates have surged to their highest level since July, reaching 6.75% for a 30-year fixed loan. This increase is attributed to rising bond yields amid concerns over the ongoing war with Iran. The recent spike has significantly impacted housing affordability, with monthly payments for buyers increasing substantially.
- ▪The average rate on a 30-year fixed loan rose 7 basis points to 6.75%.
- ▪Rates have increased by 33 basis points in the last 10 days and are 46 basis points higher than their April low of 6.29%.
- ▪For a $420,000 home, the monthly payment has increased by $167 due to rising rates.
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Growing concern over the trajectory of the war with Iran has bond yields rising and mortgage rates following suit.The average rate on the 30-year fixed loan rose 7 basis points Tuesday to 6.75%, according to Mortgage News Daily. That is the highest level since July 31. Rates are now up 33 basis points in just the last 10 days and are 46 basis points higher than their recent April low of 6.29%. That April drop came after a sharp spike in rates at the start of the war, when the rate jumped from 5.99% at the start of March to 6.64% by the end of the month."Bonds are telling politicians to get serious about ending the war or face increasingly dire consequences," wrote Matthew Graham, chief operating officer at Mortgage News Daily.The move from 5.99% to now 6.75% is a meaningful change in the…
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