Why the Bond Market’s Struggles Are Driving Up Mortgage Rates
Higher Treasury yields are pushing up borrowing costs and squeezing homebuyers, with lenders and investors repricing mortgage-backed securities.
- Mortgage rates have risen above 7% this week as the 10-year Treasury note yield hit its highest level since 2007, reaching a nearly 20-year high.
- Inflation rose 3.4% in August, exceeding the Federal Reserve's 2% target, while the article notes the Iran war has exacerbated inflationary pressures on the economy.
- Tech giants Alphabet, Amazon, Meta, and Oracle issued approximately $132 billion in bonds this year, according to Vanguard, while U.S. government debt exceeds $40 trillion.
- Homeowners considering refinancing face limited benefits at current rates, as the Federal Reserve has signaled at least one additional rate hike before year's end.
- Investors demand higher yields to account for increased risk, while in inflationary environments demand for bonds can drop as they become less desirable.
47 Articles
47 Articles
My Mother Lode
America In Focus: money pressures climb as mortgage rate tops 7%, bond yields rise
The average long-term U.S. mortgage rate rose this week above 7% for the first time since January 2025, the latest affordability setback for prospective homebuyers following a five-week run of rate increases. The weekly average rate on a 30-year fixed-rate home loan rose to 7.03% from 6.95% last week, mortgage buyer Freddie Mac said Thursday. One year ago, the average rate was 6.30%. Meanwhile, the Energy Department said Thursday that it will sp…
Purdue Exponent
Why the Bond Market’s Struggles Are Driving Up Mortgage Rates
Indulge me for a moment in memories of 2007. It was a time when gaucho pants were inexplicably cool, Apple was about to release a brand new iPhone and, yes, the yield on the 10-year Treasury note topped 5%. It…
Mortgage Rates Exceed 7%. Where Will the Housing Market Go? - Long Island Life & Politics
By Hank Russell With parts of the Long Island housing market seeming to improve, there are concerns as to whether those improvements will continue now that mortgage rates are now north of 7%. On September [...] The post Mortgage Rates Exceed 7%. Where Will the Housing Market Go? appeared first on Long Island Life & Politics.
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