Mortgage rates in the United States have reached their highest levels in nearly three years, with the average 30-year fixed rate hitting 7.28% as of Thursday, according to data from Freddie Mac. This figure represents a significant increase of 0.25 percentage points from the previous week and a 0.94 percentage point rise compared to the same time last year.

Financial analysts attribute the upward trend in mortgage rates primarily to the performance of 10-year Treasury yields. These yields have risen by more than 1.25 percentage points since February, a period that coincides with the onset of the conflict in Iran. Because mortgage lenders often use Treasury yields as a benchmark for pricing home loans, the volatility in the bond market has directly translated into higher borrowing costs for prospective homebuyers.

The housing market, which was already experiencing a slowdown due to limited inventory and previously elevated interest rates, now faces the risk of a more pronounced freeze. Industry experts suggest that the combination of rising rates and existing supply constraints is discouraging potential buyers, leading to a sharp decline in the volume of new mortgage applications. While the market continues to adjust to these shifting economic conditions, the immediate outlook remains cautious as buyers and sellers navigate the impact of these higher financing costs.