Mortgage Rates Soar to Near Three-Year High, Hammering Homebuyers

Rising mortgage rates have left homebuyers feeling pinched as prices surge to nearly three-year highs.

The average rate offered for a 30-year fixed mortgage jumped to 7.28% this week, up from 7.02% the previous week, according to Freddie Mac.

This marks the largest one-week increase since October 2022 and has added hundreds of dollars to monthly mortgage costs, making homeownership even more out of reach for many first-time buyers.

As yields on 10-year Treasurys climbed to highs not seen in decades, investor concerns about inflation drove up Treasury note yields. Fed Chair Kevin Warsh calls these notes 'the most important financial asset in the world,' and their rising yields have a direct impact on mortgage rates.