The average U.S. 30-year mortgage rate rose 11 basis points to 7.37%, its highest in two years, Yahoo Finance reporter Claire Boston said. For a $400,000 home with 20% down, she estimated monthly payments would be over $200 higher than a year ago.
Boston attributed the increase to a sharp run-up in Treasury yields over the past couple of weeks. She said concerns that the Federal Reserve might raise rates in October, along with hot PMI data, had intensified pressure in recent days.
Boston said rates were about one percentage point above a year earlier. In her example, she estimated the difference would amount to more than $2,500 a year and $75,000 in additional interest over 30 years. She also said the 7% threshold can deter buyers from searching for homes, with some opting to rent longer.
