Thinking Of Buying A House? 30-Year Mortgage Rates Rise Over 7% Again

As fears of sticky inflation and persistent rate hikes continue to impact markets, the average rate on the 30-year fixed mortgage reportedly breached the 7% mark on Thursday.

Rates had jumped over the 7% mark last October, hitting the highest level in over 20 years, according to a CNBC report.

However, they fell in the following months as inflation seemed to be cooling. By mid-January, rates were hovering close to 6%, leading to a spike in buyers signing contracts on existing homes, the report said.

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"Rates continue to move at the suggestion of economic data, and the data hasn't been friendly. This is scary considering this week's data is insignificant compared to several upcoming reports," said Matthew Graham, chief operating officer at Mortgage News Daily.

Rising Yield: The 10-year Treasury yield breached the 4% mark this week for the first time since November led by fears of persistent rate hikes and lingering inflation.

The iShares 20 Plus Year Treasury Bond ETF TLT closed 0.89% lower on Thursday while the Vanguard Total Bond Market Index Fund ETF BND lost 0.21%.

Mortgage applications from homebuyers have been declining for the past month and hit a 28-year low last week, the CNBC report stated citing the Mortgage Bankers Association. This is because today's monthly payment is about 50% higher compared with a year ago when rates were in the 4% range.

George Ratiu, senior economist at Realtor.com said consumers have taken on a record amount of debt. "With rising interest rates, financial burdens are expected to increase, making consumer choices more difficult in the months ahead," he said according to the CNBC report.

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