On Tuesday, the average rate for the long-term fixed mortgage jumped again, hitting 7.72%. This is the highest it’s been since 2000, and it’s even higher if you factor in the potential for it to go over 8%.
Mortgage rates are tracking closely to the yield on 10-year Treasuries, which is on the rise after some good economic news this week. At the start of the year, rates dropped to around 6%, which was a good sign for the housing market, but then they started to go up over the summer and sales dropped even though there was a lot of demand.
The Federal Reserve didn’t raise interest rates last week, but they said they could hike again this year and cut back on cuts next year. So investors are waiting to see what the Fed has to say in the first few weeks of October.