US Mortgage Rates Hit Near Three-Year High, Chilling Homebuyer Confidence

The average rate on a 30-year fixed mortgage has surged to nearly a three-year high of 7.28%, driven by turmoil in the US bond market and concerns over inflation.

This increase is the sixth straight weekly rise, with the biggest one-week jump in almost four years, according to Freddie Mac data.

The Federal Reserve's decision to keep interest rates higher for longer may be a contributing factor, as investors expect the Fed to control inflation at any cost.

For homebuyers, this means higher monthly payments and a greater overall cost of borrowing, making it even more challenging to enter the housing market.