On Thursday, the average rate for a 30-year fixed mortgage increased to 7.07%, marking a rise of 10 basis points from the previous day, according to Mortgage News Daily. This increase is attributed to a surge in oil prices and the bond market's reaction to recent economic data, including a wholesale inflation reading that aligned with expectations.
Matthew Graham, COO at Mortgage News Daily, noted that the bond market has faced challenges recently, influenced by Treasury Secretary Bessent's comments and the Treasury buyback announcement. Since the onset of the Iran war, mortgage rates have been on the rise, with the rate hitting a low of 5.99% just before the conflict began.
For potential homebuyers, this increase translates to a monthly payment of $244 more for a $430,000 home compared to the end of February. Additionally, U.S. homebuilder stocks are already declining, reflecting concerns over falling existing home sales and rising home prices despite increased supply