30-year fixed mortgage rate hits 7.45%

Mortgage rates climbed sharply Thursday, with the 30-year fixed reaching 7.45%, according to Mortgage News Daily. The increase followed a surge in bond yields, which pushed rates higher throughout the day.

Mortgage News Daily first reported the rate had crossed 7% in the morning, but later re-surveyed and found rates had risen further. The rate was up 19 basis points from the previous day's 7.26%.

Matthew Graham, chief operating officer at Mortgage News Daily, noted that the 7% threshold was last broken on September 10th, following inflation reports that raised concerns about the Federal Reserve's potential rate hike.

The 30-year fixed mortgage rate had dropped to 5.99% at the end of February but began rising as the war with Iran started. Rates climbed further in September after the Federal Reserve raised its benchmark rate.

Mortgage rates generally follow the yield on the 10-year U.S. Treasury, which has been rising due to factors like higher oil prices and stronger economic data.

The housing market continues to face difficulties, including high home prices, weak consumer confidence, and a limited supply of affordable homes. While some factors contributed to the recent rate increase, the afternoon's bond selloff remains unclear.