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Mortgage rates surged for the second-straight week after hitting two-year lows

  • CNN
  • October 10, 2024
CNN

 — 

Prospective homebuyers waiting on the sidelines for a further drop in mortgage rates received unwelcome news on Thursday.

The average rate on a standard, 30-year fixed mortgage was 6.32% in the week ending October 10, mortgage financing provider Freddie Mac said Thursday. It was the largest one-week increase in mortgage rates since April and the second straight week rates jumped higher after falling to a two-year low last month.

Mortgage rates had been steadily trending downward since the spring. The Federal Reserve's rate cut last month ignited hopes that mortgage rates would continue their downward trend. But a stronger-than-expected job report last week caused bond yields to jump. Mortgage rates track the benchmark 10-year Treasury yield.

"We should remember that the rise in rates is largely due to shifts in expectations and not the underlying economy, which has been strong for most of the year," said Sam Khater, Freddie Mac's chief economist, in a statement. "Although higher rates make affordability more challenging, it shows the economic strength that should continue to support the recovery of the housing market."