Year mortgage rate jumps to 7.17% - a nearly 2-year high - in the latest blow to the housing market

The average 30-year fixed mortgage rate jumped to 7.17% on Monday, its highest level since January 2025, dealing another blow to a housing market already stuck in neutral. Mortgage News Daily reports the rate rose 5 basis points to 7.17%, and is up 23 basis points since last Tuesday, following a rise in the 10-year Treasury yield above 5%. The article notes this matters because mortgage pricing often tracks the 10-year yield, not the Fed’s short-term benchmark directly. The move reflects political and economic developments, bond issuance, and sensitivity to Middle East conflict, oil prices and inflation. Higher rates could slow home sales further this fall.