US 30-year fixed mortgage rate rises to 7.45% — CNBC

In the United States, the average rate on a 30-year fixed-rate mortgage rose to 7.45% on September 24. This is the highest level since April 2024, CNBC Top News reports, citing Mortgage News Daily.

Increase in one day

Over one day, the average rate increased by 19 basis points, from 7.26%. Mortgage News Daily initially conducted its daily survey of brokers and lenders in the morning, and after the yield on 10-year US government bonds rose further in the afternoon, it repeated the survey and recorded a higher result.

Other sources, including Freddie Mac, reported that the rate had exceeded 7% that same morning. At the same time, this figure reflected the average for the previous week rather than changes during the current day.

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Factors driving rate movements

Mortgage News Daily Chief Operating Officer Matthew Graham noted that the 7% level on a daily basis was first exceeded on September 10 following inflation reports that increased the risk of a Federal Reserve rate hike, which took place last week. According to him, further growth was influenced by Fed comments, more expensive oil, and stronger economic data.

At the end of February, the rate on a 30-year fixed mortgage had fallen to 5.99%, but later began to rise. At the beginning of September, the upward movement accelerated, especially after the Federal Reserve raised its benchmark rate. Mortgage rates in the United States roughly follow the yield on 10-year Treasury bonds.

Housing market conditions

The increase in borrowing costs is occurring amid high home prices, weak consumer confidence, and a limited supply of affordable housing. Graham noted that there was no obvious catalyst for the day's bond sell-off.