Mortgage Rates Reach 7.12% as Bond Market Selloff Continues

The average interest rate on a 30-year fixed-rate mortgage has surged to its highest level since May 2024, reaching 7.12% last week, according to the Mortgage Bankers Association.

This marks a significant increase from the prior week's rate of 6.97%, and experts warn that the bond market selloff is far from over.

The 10-year U.S. Treasury yield, which mortgage rates are tied to, has also risen to 5.12%, its highest level since July 2007, if it holds until the market close.

Federal Reserve governor Michael Barr attributed the need for higher interest rates to containing inflation, stating that further policy adjustments may be necessary to bring inflation down to target in a timely fashion.