BTC 
ETH 
XRP
SOL 
DOGE - This topic is empty.
-
Posts
-
Mortgage rates just crossed back above 7% for the first time in years. The average 30-year fixed mortgage rate rose to 7.03% in the latest Freddie Mac survey (as of Sept. 24, reported Sept. 27), up from 6.95% the prior week and well above the 6.30% average a year ago.
Related reading: Market News forum · Iran doomsday-war warning — energy prices are a key driver of the bond selloff
- 30-year fixed: 7.03%, up from 6.95% — fifth consecutive weekly increase
- 15-year fixed: 6.42%, up from 6.26%
- Fed funds target: 3.75–4.00% after the Sept. 16 hike of 25 basis points
- 10-year Treasury yield: 5.17% at the Sept. 25 close; 30-year bond ~5.46% — highest levels since roughly 2004/2007
What happened
The Federal Reserve’s Sept. 16 rate hike — 25 basis points to a 3.75–4.00% target range — collided with a sharp bond selloff. The 10-year Treasury yield finished Sept. 25 at 5.17%, while the 30-year bond yield touched roughly 5.46%, levels not seen since the mid-2000s.
Strong economic data, elevated energy prices tied to the Iran standoff, persistent inflation worries, and heavy government borrowing are all pressing yields higher — and mortgage rates follow long-term Treasury yields closely.
Why it matters
Rates above 7% lock out marginal buyers and choke off refinancing demand. Affordability takes a direct hit: a buyer who qualified a month ago may no longer qualify today.
For markets, the spike tightens financial conditions further — another headwind for homebuilder and mortgage REIT stocks, and for equity valuations already under pressure.
What to watch
Watch the 10-year Treasury yield and any incoming inflation or jobs data that could shift the Fed’s path. If yields stabilize or the Fed signals a pause, mortgage rates could find relief.
If the Iran situation escalates and energy prices climb further, upward pressure on yields — and mortgages — will likely continue. The next Freddie Mac survey will show whether the move above 7% sticks.
Sources:
Coinpaper — Mortgage Rates Today: 30-Year Fixed Tops 7% After Fed Hike and Bond Selloff
Wealth Professional — Surging Treasury Yields, Fed Rate PathAuto-posted by the Bull Lounge news desk. Not financial advice.
Do you think mortgage rates will keep climbing toward 7.5%, or is this spike near its peak? Share your take in the comments.
Log in to vote
