In the mortgage industry, this week has seen the emergence of a concerning trend: a dramatic increase in 30-year fixed-rate mortgages. Treasury yields have passed the 4.9% mark, the highest rate since 2007. This development has had a direct impact on mortgage rates, causing the average rate of the 30-year fixed-rate mortgage to eclipse 8%.
This signals a negative shift in the overall market, and it is likely to adversely affect people who are seeking to purchase or refinance a home. Financing a house becomes more expensive as rates increase. Furthermore, holders of Adjustable-Rate Mortgages (ARMs) may face a bump in their mortgage payments as the initial interest rate of their ARM moves closer to the present market rate.
Important Elements of Text:
• Dramatic Increase in 30-Year Fixed-Rate Mortgages: Rates on the 30-year fixed-rate mortgage eclipsed 8% this week as the Treasury yield surpassed 4.9% for the first time since 2007
• Increase in Rates Resulting from High Treasury Yields: Treasury yields have passed the 4.9% mark, the highest rate since 2007, which has caused the average rate of the 30-year fixed-rate mortgage to eclipse 8%
• Adverse Affects on Market: Financing a house becomes more expensive as rates increase, and holders of Adjustable-Rate Mortgages may face a bump in their mortgage payments
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