Mortgage Rates Near 7% as 10-Year Yield Falls Below 5%
Updated
Updated · HousingWire · Oct 31
Mortgage Rates Near 7% as 10-Year Yield Falls Below 5%
3 articles · Updated · HousingWire · Oct 31
Summary
Mortgage rates are now closer to 7% than 8%, and HousingWire said the drop in the 10-year Treasury yield below 5% has opened a credible path back to sub-7% borrowing costs.
Two weeks of lower rates have already stabilized housing demand: weekly pending home sales held above levels from two weeks earlier, though purchase applications rose 4% week to week and still remain well below year-ago levels.
Mortgage spreads are cushioning borrowers despite recent deterioration, holding at 2.23%; at the worst spread levels seen in 2023, today’s mortgage rate would be about 8.15% instead of 7.27%.
Inventory rose to 914,833 from 911,956 in the latest week, new listings totaled 57,265, and price cuts reached 43% versus 42% a year earlier, signaling demand is still soft with rates above 7%.
The outlook now hinges on jobs data, oil, AI and geopolitics: easing conflict, a trade-war pause and an AI slowdown could push rates below 7%, while stronger growth and renewed inflation pressure could keep them elevated.