– Mortgage rates soar above 7% due to strong economic growth data, indicating a potential slowdown in rate cuts.
– Increased economic and job growth result in the bond market assuming lesser rate cuts.
– The 10-year bond yield surges past 4%, causing mortgage rates to rise as well.
In an unexpected turn of events, mortgage rates have skyrocketed to over 7% as a result of robust economic growth data. The surge in rates can be primarily attributed to the bond market’s response to the flourishing economy and astonishing job growth, indicating a potential reduction in future rate cuts. As the bond market assumes that fewer rate cuts are on the horizon, the 10-year bond yield has surged above 4%, exerting upward pressure on mortgage rates.
This sudden increase in mortgage rates serves as a cautionary signal for prospective homebuyers and borrowers. The upward trend in rates can directly impact the affordability of housing, potentially deterring individuals from entering the housing market or refinancing their existing mortgages. As rates continue to climb, it is prudent for consumers to carefully assess their options and consult with industry professionals to make informed decisions.
You can read this full article at: https://www.housingwire.com/articles/altos-are-higher-mortgage-already-rates-deterring-homebuyers/(subscription required)
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