Mortgage Rates Return Above 7% After Twenty Months

The average interest rate for a 30-year mortgage has surpassed 7% after being lower for twenty months. This development poses challenges for the housing market and for homebuyers who are already grappling with rising costs in various sectors. This increase in mortgage rates coincides with Treasury yields reaching their highest levels in decades, affecting borrowing costs throughout the economy.

Amna Nawaz discussed these changes with David Wessell from the Hutchins Center on Fiscal and Monetary Policy. Wessell provided insights into the reasons behind these shifts and their potential impact on both the housing market and the broader economy.