US mortgage rates jump by most in 4 years in latest week
TLT•The average rate on a 30-year fixed-rate US mortgage rose to 7.28% from 7.03%, its largest weekly increase in about four years and highest in almost three years. The rise followed higher US government bond yields.
1. Mortgage rates rise
The average rate on a 30-year fixed-rate mortgage climbed a quarter percentage point this week to 7.28%, Freddie Mac data showed. It was the largest weekly increase in about four years and the highest rate in almost three years.
2. Bond yields and demand
Mortgage rates are closely tied to the yield on 10-year US Treasury notes, which hit its highest level in nearly a quarter century this week. The Mortgage Bankers Association also reported a drop in mortgage application volumes, while its president and CEO, Bob Broeksmit, said affordability and borrower demand had weakened in recent weeks.
