Mortgage Rates Surge to 2-Month High — Here’s What’s Driving It

Homebuyers and refinancers just got hit with another bump: mortgage rates climbed for the second straight week, reaching their highest levels in about two months.

Here’s the breakdown, according to the Mortgage Bankers Association:

• The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances (up to $766,550) jumped to 6.9%, up from 6.81% the week before.
• Jumbo loans (balances over $806,500) saw rates climb too, hitting 6.9% from 6.84%.
• Mortgages backed by the FHA nudged up to 6.56%, from 6.52%.

What’s behind the spike?

Rising bond yields are a big part of the story — and political drama isn’t helping. President Trump’s renewed criticism of Fed Chair Jerome Powell has stirred up fresh uncertainty, pushing borrowing costs even higher.

Source: Mortgage Bankers Association of America

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