US Mortgage Rates Soar to 2023 High Amid Inflation Fears

The U.S. mortgage market is experiencing its highest interest rates since 2023, with a 30-year mortgage average rate of 7.45% and a jump of 150 basis points in six months.

This surge in mortgage rates has been attributed to the recent Federal Reserve rate hike, which marked the first increase since 2023.

Inflation is also playing a major role, with U.S. consumers expecting prices to rise by 4.6% over the next year, the third-highest reading in the past 12 months.

Ross Gerber, a market commentator, warned that the U.S. 'can't afford' sustained 5% Treasury yields without risking a debt spiral.