{"id":847297,"date":"2025-05-10T20:13:13","date_gmt":"2025-05-11T01:13:13","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/05\/10\/mortgage-rates-surge-over-7-as-tariffs-hit-bond-market\/"},"modified":"2025-05-10T20:13:13","modified_gmt":"2025-05-11T01:13:13","slug":"mortgage-rates-surge-over-7-as-tariffs-hit-bond-market","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/05\/10\/mortgage-rates-surge-over-7-as-tariffs-hit-bond-market\/","title":{"rendered":"Mortgage rates surge over 7% as tariffs hit bond market"},"content":{"rendered":"
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The average rate on the popular 30-year fixed mortgage surged 13 basis points Friday to 7.1%, according to Mortgage News Daily. That\u2019s the highest rate since mid-February.<\/p>\n

Mortgage rates have been on a roller coaster ride all week, as bond yields\u00a0spiked higher mid-week<\/a>\u00a0when President Donald Trump\u2019s new tariffs on dozens of countries went into effect. Yields dropped when Trump\u00a0lowered the tariff rate on most countries<\/a>\u00a0hours later. Tariffs on Chinese imports, however, currently stand at 145%.<\/p>\n

But bonds began selling off again Friday,<\/a>\u00a0despite a cooler-than-expected inflation report. Mortgage rates loosely follow the yield on the 10-year Treasury.<\/p>\n

\u201cThere have been some bad weeks for bonds here and there over the careers of most anyone who\u2019s alive to read these words, but unless your career began before 1981, you just lived through the worst week you\u2019ve ever seen in terms of the jump in 10-year yields,\u201d said Matthew Graham, chief operating officer at Mortgage News Daily.<\/p>\n

Graham said there are two ways to look at where bonds are trading today: \u201cThis is either the end of the worst week for 10-year yields since 1981 or the end of a fairly average two weeks that fit right in with the trend of the past 18 months.\u201d<\/p>\n

On Friday, another\u00a0monthly report on consumer sentiment<\/a>\u00a0came in substantially lower than expected. The expectation for inflation jumped from 5% in March to 6.7% in April, the highest level since 1981.<\/p>\n

All of this comes right in the heart of the all-important spring housing market. For most consumers, a home is their single largest investment.<\/p>\n

\u201cForget about housing in this environment, with mortgage rates back up, consumers certainly concerned about the job market, housing will also be on the weak side,\u201d said Nancy Lazar, chief global economist at Piper Sandler, on CNBC\u2019s\u00a0\u201cThe Exchange\u201d<\/a>\u00a0on Friday.<\/p>\n<\/div>\n

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<\/picture><\/div>\n

Diana Olick, CNBC<\/span><\/span><\/a><\/span><\/p>\n

Diana Olick is an Emmy Award-winning journalist, currently serving as CNBC’s real estate correspondent.<\/p>\n<\/div>\n

Read More<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The average rate on the popular 30-year fixed mortgage surged 13 basis points Friday to 7.1%, according to Mortgage News Daily. That\u2019s the highest rate since mid-February. Mortgage rates have been on a roller coaster ride all week, as bond yields\u00a0spiked higher mid-week\u00a0when President Donald Trump\u2019s new tariffs on dozens of countries went into effect.<\/p>\n","protected":false},"author":1,"featured_media":847298,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22149,22767],"tags":[8150,7901],"class_list":{"0":"post-847297","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-mortgage","8":"category-rates","9":"tag-mortgage","10":"tag-rates"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/847297","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=847297"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/847297\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/847298"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=847297"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=847297"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=847297"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}