Freddie Mac Lifts 30-Year Mortgage Rate to 7.4% as Fed Signals Another 0.25% Hike
Updated
Updated · Yahoo Finance · Oct 8
Freddie Mac Lifts 30-Year Mortgage Rate to 7.4% as Fed Signals Another 0.25% Hike
3 articles · Updated · Yahoo Finance · Oct 8
Summary
Freddie Mac's Oct. 8 survey put the average 30-year fixed mortgage at 7.4%, up 12 basis points in a week and 94 basis points above a year earlier.
The rise tracks surging bond yields: the 10-year Treasury opened at 5.32%, near 24-year highs, as inflation and federal-deficit worries hit the bond market.
The average 15-year fixed rate climbed to 6.73%, and the gap between the 30-year mortgage rate and the 10-year Treasury stood at 2.08 percentage points.
Federal Reserve officials, after their first rate increase in three years, are leaning toward another quarter-point hike before year-end, reinforcing a higher-for-longer rate outlook.
That outlook is reshaping housing demand for 2027: Cotality says buyers often pause above 7%, while a HousingWire survey found 70% of lenders expect rates near 7.5% or higher.