Mortgage rates moved above 7 percent on September 10, creating another obstacle for buyers even as the housing market becomes increasingly favorable to them in other ways.
The average daily 30-year fixed mortgage rate reached 7.07%, its highest level in 16 months. Freddie Mac’s weekly average rose to 6.76%, marking a third consecutive weekly increase, while mortgage applications fell 2.7%.
Several factors are pushing borrowing costs higher. Treasury yields surged despite a federal bond-buyback effort intended to lower them. Inflation concerns are also mounting as oil prices rise amid the continuing conflict with Iran.
After August producer prices increased 0.4%, financial markets placed the probability of a Federal Reserve rate hike at its September meeting at approximately 70%. Expectations for another increase in December also climbed.
