WHAT YOU NEED TO KNOW
  • The average 30 year fixed rate mortgage reached 7.58% on Tuesday, its highest level since November 2023.
  • Mortgage rates rose 8 basis points from Monday as the 10 year Treasury yield climbed to 5.28%.
  • Rates have risen from 6.75% on Aug. 26 and crossed the 7% threshold around Sept. 10.
  • Current rates remain below the late 2023 peak near 7.8% but could chill home sales before the typical winter slowdown.

DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.

Mortgage rates climbed toward 7.6% on Tuesday as Treasury yields continued their march higher. The latest increase pushed a key home lending benchmark to its highest level in more than two years and closer to the peak recorded in late 2023.

The average 30 year fixed rate mortgage reached 7.58% on Tuesday, according to Mortgage News Daily. That reading marked the highest level since November 2023, extending a sharp rise that has unfolded alongside volatility across bond markets.

Tuesday’s average was 8 basis points above Monday’s level. The increase brought mortgage rates within sight of 7.6%, a threshold that leaves the market not terribly far from the highs reached during late 2023.

The 10 year Treasury yield, which mortgage rates closely track, also moved higher. It was up about 4 basis points at 5.28% as of midday, reinforcing the pressure accompanying the latest mortgage rate increase.

MORE NEWS: El Pollo Loco Storms Into New York on Quest to Become National Chicken Powerhouse

Mortgage rates still remain below the peak of roughly 7.8% reached in late 2023. Yet the gap has narrowed considerably, leaving rates close enough to that prior high to threaten another chill in home sales.

That possibility arrives ahead of the housing market’s typical winter slowdown. With mortgage rates already at their highest point since November 2023, the latest increase could weigh on sales before that seasonal cooling period begins.

The climb has been rapid since late August. Mortgage rates stood at 6.75% on Aug. 26, placing them well below Tuesday’s 7.58% reading before a renewed burst of bond market volatility pushed rates higher.

Rates crossed the 7% threshold around Sept. 10. They have continued rising since then, with growing investor concern about oil prices, inflation, and potential future Federal Reserve rate hikes driving volatility in bond markets.

With the Federal Reserve expected to keep interest rates unchanged this month, do you think interest rates should remain where they are instead of being cut?

By completing the poll, you agree to receive emails from Gold Investors News, occasional offers from our partners and that you've read and agree to our privacy policy and legal statement.

The move from 6.75% in late August to above 7% around Sept. 10 established the direction of the recent trend. Tuesday’s rise to 7.58% showed that the upward pressure had not yet faded.

Treasury market movements remain central to the mortgage rate story because the 10 year Treasury yield is closely tracked by mortgage rates. Its rise to 5.28% as of midday coincided with the latest jump in the average 30 year fixed rate mortgage.

Mortgage News Daily’s Tuesday reading also placed the current rate only modestly below the late 2023 peak near 7.8%. While rates have not returned to that level, they have moved much closer after sitting at 6.75% on Aug. 26.

The 8 basis point increase from Monday offered another sign of how quickly borrowing conditions were changing. Tuesday’s rate was not merely near 7.6%, but also the highest recorded since November 2023.

Close

MORE NEWS: Goldman Succession Plan Runs Into a Brutal Solomon Problem

Investor anxiety has centered on oil prices, inflation, and the possibility of additional Federal Reserve rate hikes. Those concerns have fueled bond market volatility, which has accompanied the steady rise in mortgage rates since early September.

The latest figures leave the housing market facing rates that are some distance from the late 2023 peak, though not a wide distance. Even without reaching 7.8%, the current 7.58% level could be sufficient to cool home sales.

Timing adds to the concern because the market’s normal winter slowdown is approaching. A mortgage rate near 7.6% creates another potential restraint as the housing market heads toward a period that typically brings softer activity.

For now, the path remains defined by rising Treasury yields and persistent bond market turbulence. Mortgage rates have advanced from 6.75% on Aug. 26, crossed 7% around Sept. 10, and reached 7.58% on Tuesday.

The result is a mortgage market operating at its highest rate level in more than two years. With the late 2023 peak around 7.8% now relatively close, further bond market volatility remains a critical factor for the direction of rates.

DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.