Mortgage Rates Reach 23-Year High, Demand Slumps

Mortgage rates have surged to a new multi-decade high, with the average lender increasing rates at least once during the day. The underlying bond market started stronger but weakened significantly, leading to the rise in rates. The reasons for this weakness are debated, but the market seems to believe that interest rates will remain higher for longer. Traders are being cautious ahead of next week's economic data, preferring to err on the side of higher rates. The mortgage-backed securities market has also contributed to the pain of today's rate adjustment. The average lender's rates have risen from 7.50% to 7.65%, with even higher rates for those with less-than-perfect scenarios.