30-Year Treasury Yield Hits 19-Year High; Mortgage Rates Stay Near 7%

On Tuesday, the yield on the 30-year U.S. Treasury reached 5.323%, marking its highest level in 19 years, and closed just shy of 5.3%, which is exerting pressure on mortgage rates nearing 7%. Meanwhile, the 10-year Treasury yield climbed above 4.7%, a rise from below 4% prior to the Iran War in late February. The average rate for a 30-year fixed mortgage increased to 6.75% from 6.69%. Lawrence Yun, chief economist for the National Association of Realtors, pointed out that rising bond yields reflect worries about ongoing inflation. In July, the consumer price index rose 3.4% year-over-year, exceeding the Fed's 2% goal, while geopolitical tensions and escalating oil prices further fueled inflation fears. Higher Treasury yields are pushing up consumer borrowing costs, with new-vehicle financing at 7% and used-vehicle loans at 10.6%.