30-Year Mortgage Rate Hits 7.07%, First Time Above 7% Since May — SkimNews
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- Mortgage News Daily reported the average 30-year fixed mortgage rate hit 7.07% on Thursday, up 10 basis points from Wednesday and the first time above 7% since May 2025.
- Mortgage News Daily COO Matthew Graham blamed the bond market selloff on two drivers: Wednesday's reaction to Treasury Secretary Bessent's Treasury buyback announcement and Thursday's overnight oil price surge.
- U.S. 10-year Treasury yields rose Thursday as surging oil prices overshadowed an August Producer Price Index reading of 0.4%, which matched Dow Jones consensus estimates.
- Mortgage rates have climbed steadily since the start of the Iran war, hitting a low of 5.99% the day before the conflict began.
- Homebuyers purchasing a $430,000 home (near the national median) with 20% down now face a monthly principal-and-interest payment $244 higher than at the end of February.
- U.S. homebuilder stocks were already declining Thursday after a monthly existing home sales report showed sales falling and prices rising despite higher supply.
Why it matters: A buyer financing a median-priced $430,000 home now pays $244 more per month than they did in late February, a roughly 13% increase in monthly payment driven by the 108-basis-point jump in rates since the Iran war began. Homebuilder stocks were already falling before Thursday's rate spike as existing home sales dropped and prices climbed on higher supply — a combination that signals affordability pressure is tightening on both ends of the market.
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