economy
What's the mortgage rate you'll be paying later this year? Probably higher
With mortgage rates reaching a record high on Tuesday, traders also increase likelihood that rates will go above 6.8%.
TL;DR
- Mortgage rates have hit their highest level since July 2025.
- Prediction markets indicate a strong likelihood of rates exceeding 6.8% and possibly reaching 7% this year.
- The rise in mortgage rates is linked to increased Treasury yields, geopolitical events involving Iran, and resultant inflation.
- Consumer prices increased by 3.8%, the highest since May 2023.
- Despite the rate increases, pending home sales have risen both month-over-month and year-over-year.
- A basis point is equivalent to 0.01%.