WASHINGTON, Oct 8 (Reuters) – The average rate on the popular US 30-year fixed-rate mortgage surged to a near three-year high this week, and could increase further as concerns over inflation boost Treasury yields.
The 30-year fixed mortgage rate averaged 7.40%, the highest level since November 2023, mortgage finance agency Freddie Mac said on Thursday. That was up from 7.28% last week.
The US-Israeli war with Iran is fanning inflation through higher energy prices, driving up longer-term Treasury yields. The yield on the benchmark 10-year Treasury note, which mortgage rates track, has risen to a 24-year high.
The average rate on a 30-year fixed-rate mortgage has soared 142 basis points since the war started at the end of February.
(Reporting By Lucia Mutikani; Editing by Mark Porter)
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