đš BREAKING: The cost to buy a house in America just jumped again, 7.49% on a 30-year mortgage, the highest since November 2023.
The Mortgage Bankers Association reported the average 30-year fixed rate surged 19 basis points in the week ending October 2, landing at a level last seen nearly three years ago.
The driver is the bond market. Mortgage rates track the 10-year Treasury yield closely, and that yield just touched its highest level in 24 years, fueled by worries over inflationary pressure from soaring oil prices and data showing the US economy grew faster in the first half of the year than initially estimated.
The timing stings. This hits four weeks before midterm elections that will decide whether Republicans keep control of Congress, with affordability now a front-and-center economic issue for voters.
The Fed isn't offering fast relief either. Policymakers have signaled they expect one more hike before year-end, even as markets are currently betting against a move at the October 28 meeting.
The real-world impact is already showing up: mortgage applications fell 4.2% last week, with refinancing activity dropping sharply. "Very few homeowners have an incentive to refinance at these rates, and the jump in borrowing costs has caused many potential borrowers to step back from the purchase market," said Joel Kan, the MBA's deputy chief economist.
Rates this high aren't just a number on a chart anymore. They're actively pricing people out of the market in real time, right as the political stakes around the economy are about to peak.
#MortgageRates #Housing #Economy #Fed #RealEstate
The Mortgage Bankers Association reported the average 30-year fixed rate surged 19 basis points in the week ending October 2, landing at a level last seen nearly three years ago.
The driver is the bond market. Mortgage rates track the 10-year Treasury yield closely, and that yield just touched its highest level in 24 years, fueled by worries over inflationary pressure from soaring oil prices and data showing the US economy grew faster in the first half of the year than initially estimated.
The timing stings. This hits four weeks before midterm elections that will decide whether Republicans keep control of Congress, with affordability now a front-and-center economic issue for voters.
The Fed isn't offering fast relief either. Policymakers have signaled they expect one more hike before year-end, even as markets are currently betting against a move at the October 28 meeting.
The real-world impact is already showing up: mortgage applications fell 4.2% last week, with refinancing activity dropping sharply. "Very few homeowners have an incentive to refinance at these rates, and the jump in borrowing costs has caused many potential borrowers to step back from the purchase market," said Joel Kan, the MBA's deputy chief economist.
Rates this high aren't just a number on a chart anymore. They're actively pricing people out of the market in real time, right as the political stakes around the economy are about to peak.
#MortgageRates #Housing #Economy #Fed #RealEstate
