Mortgage rates rise this October, marking a challenging month for potential homeowners and refinancers alike. As of last Friday, the average 30-year fixed mortgage rate for top-tier borrowers hit 6.90%, climbing over 0.625% since the beginning of the month. Today’s additional 0.10% increase brings it to 7.0%, the highest level we’ve seen since July 10th.
This jump is partly due to last Friday’s bond market weakness. Mortgage rates are closely tied to bonds, and when bond values shift significantly, lenders often adjust rates accordingly. If these changes happen late in the day, lenders are more likely to implement the new rates the following business day. This week’s continued rate hike reflects both current market dynamics and specific economic factors.
One contributing factor to this increase is the recent Treasury auction. Political factors also play a role; mortgage rates often move in tandem with election developments. With the election on the horizon, rate volatility may persist, influenced by shifts in polling and political forecasts.
However, politics isn’t the only element driving rate changes. Economic reports due this week could impact rates, especially Friday’s job report. The last two job reports significantly affected mortgage rates due to larger-than-expected variances. Should this upcoming report be equally surprising, we may see mortgage rates rise or fall accordingly.
Thanks for reading,
Chris
