Mortgage rates

The 30-year average has risen by more than a full percentage point in a little over a month.

Ten-year U.S. yields climbed through 2.75% for the first time since March 2019 as investors priced in the impact of the Federal Reserve’s tightening plan and accelerating inflation.

Purchasers concerned over rising costs are jumping into the market now instead of taking a wait-and-see posture.

Further upward pressure is likely this spring, as markets prepare for expected reduction of bond purchases by the Fed.

The 30-year average passed the 4.5% mark for the first time since January 2019 as the labor market tightened and prices rose.

Federal Reserve Governor Christopher Waller said longer-run structural issues will continue to put upward pressure on home prices and rents even as the central bank begins a campaign to raise borrowing costs.

Averages rose sharply across the board, as investors focus on the central bank's response to ongoing economic and geopolitical developments.

It was the highest percentage reached in almost three years.

The increase is the first since 2018 and, combined with reductions in the mortgage and Treasury bond portfolio, it could drive 30-year home loan rates to 4.5% by year-end.

The Federal Open Market Committee is all but certain to raise rates by a quarter percentage point at the conclusion of its two-day policy meeting.