Treasury Yields Spark 7% Mortgage Talk, But Experts Say It Isn’t Inevitable

Mortgage rates rose to about 6.85% for the 30-year fixed (Freddie Mac pegs it at 6.58%), the year’s high and a hurdle for buyers, prompting talk of a possible move back to 7%. Economists say a jump to 7% would depend on the 10-year Treasury yield approaching around 5%—a scenario that is possible but not guaranteed—and that, even with higher yields, a rate around 7% isn’t assured due to market ceilings, price competition, and continued housing demand pressures. Higher rates would weigh on housing activity while home prices remain at or near record levels in many markets.