Financial markets have experienced a significant shift in recent months, with rising Treasury yields putting renewed upward pressure on mortgage rates. The 10-Year Treasury yield is currently close to 5.2 percent. In February 2026, the 10-year was around 4 percent. Higher energy prices caused by the ongoing war in Iran, higher inflation, expectations of tighter monetary policy, stronger economic growth, and ballooning federal debt have pushed Treasury yields higher and mortgage rates have followed. According to MBA’s Weekly Applications Survey, the 30-year fixed mortgage rate was 7.1 percent last week after an increase of 30 basis points over the past month, pushing the rate a full percentage point higher than in early 2026. Last week’s 7.1 percent 30-year fixed rate was the highest since 2024.
This week’s Chart of the Week illustrates the impact of rising rates on mortgage application activity.
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