A recent update from the FT highlights a challenging moment for American homebuyers, as US mortgage rates have just experienced their sharpest climb in a four-year span. On Thursday, Freddie Mac reported that the standard 30-year fixed-rate mortgage reached an average of 7.28 per cent as of October 1, which represents a noticeable increase of 0.25 percentage points compared to just one week prior. This rapid spike is currently being driven by an accelerating sell-off within the government bond market, delivering yet another setback to the housing sector. Notably, these significant economic shifts are unfolding only a few weeks before the upcoming midterm elections.

#economy #markets #housing #mortgages @ft