Mortgage Rates Jump to 7.30% After Hotter Inflation Report
A sharper-than-expected inflation report pushed a daily mortgage-rate benchmark higher Tuesday, interrupting a month of easing borrowing costs.
Mortgage rates jumped Tuesday after a hotter-than-expected inflation report shook the bond market, interrupting a month of easing borrowing costs.
Mortgage News Daily's benchmark for a top-tier 30-year fixed mortgage rose to 7.30% on November 10, up 12 basis points, or 0.12 percentage point, from the previous day. It was the largest one-day increase in more than a month, according to the rate tracker.
The move followed a Consumer Price Index report showing price pressures across a range of categories. Mortgage News Daily said the inflation figures drew a stronger market reaction than the previous week's employment report. Even after Tuesday's increase, its benchmark remained below the levels above 7.6% seen in early October.
The jump came just as lower rates had begun to bring some borrowers back to the market. Mortgage applications increased 6.2% during the previous week, CNBC reported Wednesday, citing the Mortgage Bankers Association's seasonally adjusted survey. Applications to refinance rose about 5%, while applications to buy a home increased about 8%.
Those weekly figures reflect the period before Tuesday's rate increase. The MBA's average 30-year fixed rate for that week was 7.21%, down from 7.30% the week before. Its weekly survey and Mortgage News Daily's daily benchmark measure different lending activity and should not be read as the same series.
The 7.30% figure is a market benchmark, not a rate guaranteed to every borrower. Actual offers vary with a borrower's credit, loan terms and other factors.