30-Year Fixed Mortgage Rates Jump to 7.30%
Average 30-year fixed mortgage rates rose 12 basis points to 7.30% following higher-than-expected inflation data and a strong employment report.
The average rate on the 30-year fixed mortgage rose 12 basis points to 7.30% on Tuesday, representing the largest one-day increase in more than a month. This spike ended a four-week trend of declining rates and followed a monthly consumer price index report showing inflation was higher than expected.
Mortgage News Daily tracked the jump, which occurred after a strong employment report on Friday indicated a heated economy. The market reaction reflects the Federal Reserve System's focus on inflation over full employment.
The rate increase interrupted a period of recovering mortgage demand. The Mortgage Bankers Association reported that mortgage applications had risen 6.2% the previous week, with purchase applications increasing by 8% and refinance applications by 5%, fueled by the lowest rates seen since mid-September.
