US 30-year fixed mortgage rate rose to 7.22% on the 15th after first breaching
7% on the 10th, data-monitors show. Mortgage pricing remains tightly linked to
the US 10-year Treasury yield and has climbed as Treasury yields and bank
lending costs have risen. Markets are pricing a high probability of further Fed
tightening, adding upward pressure on mortgage rates. The National Association
of Realtors said existing-home sales fell 2% MoM in August to a 3.98 mln
annualized pace, the weakest since June last year. Forecasters have cut expected
2026 home-sales growth from 4.3% to 1.3% and see a marked Q4 contraction.
Elevated mortgage rates are weighing on buyer demand and compressing homebuilder
margins.
