Mortgage Rates Skyrocket Amid Bond Market Jitters

Housing professionals are bracing for sustained mortgage rate increases as lenders and investors keep a close eye on the bond market. The average interest rate for 30-year conforming loans reached 7.06% last week, up 14 basis points from the previous week and 20 bps higher than two weeks ago.

According to HousingWire's Mortgage Rates Center, rates for 30-year Federal Housing Administration (FHA) loans rose 5 basis points to average 6.68%, while 30-year jumbo loan rates jumped another 12 basis points to average 7.26%.

Federal Reserve Chair Kevin Warsh's recent comments at the Jackson Hole Economic Symposium and the Department of the Treasury's plan to double its buybacks of long-term Treasury debt have contributed to the rate increases, as investors seek higher yields and reduced risk in the bond market.