The global sell-off in the bond market is hitting the housing market, with US mortgage rates surging to their highest level of the year. That’s putting fresh pressure on home shoppers and homeowners hoping to refinance.
The average 30-year fixed mortgage rate rose to 6.71% this week, according to Freddie Mac. That’s the highest level since July 2025.
Mortgage rates are closely tied to the 10-year Treasury yield, which often moves in tandem with investors’ expectations for future inflation and economic growth.
The 10-year Treasury and broader bond market have been swept up in a global sell-off, as investors grapple with mounting concerns over the US conflict with Iran, the effects of higher energy costs on the economy and a gross national debt that has ballooned past $40 trillion for the first time in history.
Bond yields rise when bond prices fall, and on Wednesday, the 10-year Treasury yield reached its highest level since October 2023. On Thursday, bond yields dipped slightly.
