The 10-year Treasury yield hit 5.14% before easing to 5.12%, its highest in about 19 years, The Wall Street Journal reported. A $300,000, 30-year mortgage at about 7.26% would mean $2,049 a month in principal and interest, 14.2% above the Feb. 27 estimate.
The article points to the Federal Reserve’s concerns about persistent inflation and the Middle East war as pressures on rates; it says the war has lifted global oil prices more than 60% this year. S&P Global said Sept. 23 that global output was growing at its fastest pace in more than five years, while U.S. economic activity remained resilient.
U.S. stocks fell on Sept. 23: the S&P 500 lost 0.8%, the Dow 0.7% and the Nasdaq 1.1%. The National Association of Home Builders said builder confidence was shrinking on Sept. 16, citing higher rates, materials and fuel costs, and labor shortages. Bank of America CEO Brian Moynihan said the Fed would probably raise its key rate at least once more in 2026 after its Sept. 16 quarter-point increase, which brought the rate to 3.75% to 4%.
