An article summarized by Reuters:
The average U.S. 30-year fixed mortgage rate rose 6 basis points to 6.85% for the week ending September 4th, its highest level in more than 14 months. Rising oil prices amid escalating Middle East tensions have increased inflation concerns, pushing up U.S. Treasury yields, which heavily influence mortgage rates.
Higher rates are also hurting refinancing activity. Refinance applications fell 6.2%, while total mortgage applications dropped 2.7% from the previous week. Treasury yields have also climbed because of concerns over the growing U.S. national debt, competition for capital from AI infrastructure investment, and persistent inflation.
There may not be much relief for homebuyers in the near term. The 10-year Treasury yield approached 4.8%, its highest level since October 2023, while upcoming inflation reports could influence the Federal Reserve's September 15–16th rate decision. Markets are currently pricing in a greater chance of a Fed rate hike rather than a continued hold, although cooler inflation data could change those expectations.
