Mortgage rates hit 6.71%, the highest since June 2025, as a global bond selloff and Fed Chair Kevin Warsh's signal of a possible September rate hike push 10-year Treasury yields higher and lift borrowing costs across the housing market.
Article says the 10-year Treasury yield, which mortgage rates closely track, has risen sharply in recent weeks as a global bond selloff intensifies and investors grow jittery about inflation. Warsh's speech reinforced Fed hike expectations, sending yields higher still.
A global bond selloff and Fed Chair Kevin Warsh's signal that the Fed may need to hike rates sent yields sharply higher. Mortgage rates track the 10-year closely, and traders now price roughly 50-50 odds of a 25-bp September hike.
Mortgage rates closely track the 10-year Treasury yield. As the yield rises on Fed hike bets and inflation concerns, lenders pass higher borrowing costs to homebuyers, lifting fixed mortgage rates.
A global bond selloff and rising 10-year Treasury yields push long-duration Treasury prices lower. TLT tracks long-term U.S. Treasuries, making it a direct second-order casualty of the yield move described in the article.
TLT tracks long-term U.S. Treasuries. A global bond selloff and rising 10-year yields push bond prices lower, which typically weighs on TLT.
If inflation data softens or the Fed holds rates at September, yields could retrace and long-duration bonds could recover. A risk-off flight to safety could also draw buyers into Treasuries.
Warsh's hawkish speech and rising 10-year Treasury yields lift expectations for a September Fed hike. Higher U.S. yields tend to widen rate differentials and support the dollar, though traders still price only 50-50 odds of a move.
Warsh's hawkish speech lifted expectations for a September rate hike. Higher U.S. yields tend to widen rate differentials and support the dollar.
Traders still see only 50-50 odds of a hike. If the Fed holds, the yield support for the dollar could fade quickly.
Mortgage rates reached their highest level in over a year, with Freddie Mac posting a 30-year fixed average of 6.71% for the week through Wednesday. A global bond selloff and Fed Chair Kevin Warsh's hawkish speech pushed 10-year Treasury yields higher; Mortgage News Daily showed 6.91% on Wednesday. Futures markets price roughly 50-50 odds of a 25-bp rate hike in September, keeping upward pressure on borrowing costs.
A global bond selloff and Fed Chair Kevin Warsh's hawkish speech lifted 10-year Treasury yields, which mortgage rates track closely. The 30-year fixed average hit 6.71%, the highest since June 2025, and Mortgage News Daily put rates at 6.91% on Wednesday.
Warsh said inflation is running above the Fed's 2% target and the central bank's predominant focus should be on prices. Traders read that as a signal the Fed could raise rates at the mid-September meeting.
No. The Fed influences benchmark rates through hiking or cutting decisions, but mortgage rates follow Treasury yields and are set by lenders. Current purchase mortgage averages range from 6.00% for 15-year fixed to 6.69% for 30-year fixed, according to Zillow.