A key bond market indicator is signaling mortgage rates are headed back up and may even push the average for a 30-year loan past its recent 20-year high of more than 7%.
The yield on 10-year Treasury bonds — a benchmark for the direction of mortgage rates — jumped as much as 22 basis points in the last two days, rising above 4% Thursday for the first time since March after better-than-expected data about the job market suggested high inflation isn’t going away any time soon.
The average 30-year fixed mortgage rate rose to 6.92% on Wednesday, the highest it’s been since it jumped over 7% in November, according to the most recent data from OptimalBlue, which has been tracking mortgage rates since 2015. Separate data going back further shows November had the highest rates since 2002.
Mortgage rates have more than doubled from their record lows in 2021, driven by rising inflation. House prices are still near record highs — propped up by a massive shortage of properties for sale — so more rate increases would only exacerbate the most unaffordable housing market since the 1980s.
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Source: themessenger.com
ENB
Sandstone Group
