Mortgage rates jump again, approaching 7% barrier

Published On Jan 9, 2025, 12:40 PM

Mortgage rates in the U.S. have increased for the fourth consecutive week, reaching an average of 6.93% for a 30-year mortgage. This rise is attributed to higher 10-year Treasury yields, influenced by new economic data indicating strong economic conditions, including persistent inflation and increased job openings. The strength of the economy is likely to pressure mortgage rates upwards, which could affect housing affordability. In response to the increased rates, mortgage applications for new home purchases dropped by 7%.