Mortgage rates have surged to their highest levels since August, climbing to 6.54% as of October 24, 2024. This marks the fourth consecutive week of rate increases, according to Freddie Mac, with 15-year mortgage rates also rising to 5.71%.
The upward trend in rates is driven by a spike in Treasury yields, with the 10-year Treasury yield hitting 4.2% this week—its highest point since July. These rising yields, along with stronger-than-expected economic data, are putting pressure on mortgage rates as the housing market enters a seasonal slowdown.
“Over the last few years, there has been a tension between the downbeat economic narrative and incoming economic data stronger than that narrative. This has led to higher-than-normal volatility in mortgage rates, despite a strengthening economy,” said Sam Khater, Freddie Mac’s chief economist.
The Impact on Buyers and Sellers
For buyers, the jump in mortgage rates means higher borrowing costs, which could impact affordability and overall purchasing power. Those considering locking in a rate may want to act now before further increases. Despite the rate hike, today’s 6.54% is still lower than last year’s 7.63%, meaning buyers still have an opportunity to secure a more favorable deal than in previous months.
Sellers may feel the pressure of a cooling market, as these higher rates could reduce buyer activity. However, inventory remains low, and demand for homes has not vanished—offering a glimmer of hope for sellers still looking to make a move in today’s market.
A Cooling Market, but Opportunities Remain
Data released this week underscores the challenges facing the housing market. Sales of existing homes in September fell to the lowest level since 2010, while applications to purchase or refinance homes dropped again. Purchase applications fell 5%, and refinancing applications dropped by 8%, hitting the lowest levels since July.
Still, experts believe there are opportunities for those who act now. “With rates still lower than a year ago, buyers have a chance to lock in a rate that could be more favorable than waiting for rates to stabilize,” said Johnson.
What Happens Next?
The future of mortgage rates remains uncertain, but as Treasury yields continue to fluctuate, the market could see further increases before any relief is felt. While the Federal Reserve continues its efforts to control inflation, buyers and sellers will need to stay vigilant and responsive to changes in the market.
Reach Out to a CENTURY 21 Edge Agent
Navigating these shifting conditions requires expertise, and the team at CENTURY 21 Edge is here to help. Whether you’re buying, selling, or refinancing, our agents can guide you through the market and provide tailored advice based on your goals.
Contact us today at to connect with one of our expert agents and get real-time insights on what this means for you.
