Mortgage rates ended another turbulent week just shy of 7.5%, further straining housing affordability and creating uncertainty for buyers and sellers.
Mortgage News Daily estimated the average 30-year mortgage rate at 7.49% on September 25—approximately half a percentage point higher than two weeks earlier. The increase has been driven largely by a selloff in 10-year Treasury bonds as investors remain concerned about inflation and growing government debt.
The direction of mortgage rates could remain uncertain in the coming days. Investors will closely watch new reports on personal income, consumer spending, wages and employment. Signs of a cooling economy could slow the bond selloff and ease upward pressure on mortgage rates. Stronger-than-expected economic data or continued inflation concerns could push rates even higher.
Until the economic outlook becomes clearer, buyers and sellers should expect continued mortgage-rate volatility. Higher borrowing costs will likely keep affordability under pressure and may cause more buyers to delay purchases, renegotiate contracts or reduce their price range.
