Mortgage rates surge to highest level since 2023 as bond yields spike

Mortgage rates rose to the highest level since November 2023, mortgage buyer Freddie Mac said Thursday.

Freddie Mac’s latest Primary Mortgage Market Survey, released Thursday, showed the average rate on the benchmark 30-year fixed mortgage rose to 7.28% from last week’s reading of 7.03%.

The average rate on a 30-year loan was 6.34% a year ago.

“With mortgage rates on their current trajectory, the housing market continues to be supported by favorable economic conditions,” said Sam Khater, Freddie Mac’s chief economist.

The average rate on a 15-year fixed mortgage climbed to 6.6% from last week’s reading of 6.42%.

Mortgage rates are affected by several factors, including the Federal Reserve and geopolitics. Though mortgage rates are not directly affected by the Fed’s interest rate decisions, they closely track the 10-year Treasury yield. The 10-year yield hovered around 5.23% as of Thursday afternoon.