US mortgage rates are inching toward 7%
The 15-year fixed-rate mortgage, a key gauge of refinance appetite, also moved higher, averaging 6.04% from 5.98% the prior week.
A year ago, that rate stood at 5.60%.
Bond market forces drive the rate surge
The catalyst behind the move is a global bond sell-off tied to a convergence of pressures: renewed US-Iran hostilities sending oil prices higher, persistent inflation, and investor concern over a gross national debt that has surpassed $40 trillion for the first time.
The 10-year Treasury yield, which lenders use as a guide to price long-term home loans, climbed to 4.74% as of Thursday. That’s up from 4.67% the prior week and well above the 3.97% recorded in late February before the conflict began.
