From an investing perspective, U.S. homes have paled in comparison to the stock market in recent years, and the surge in mortgage rates will likely widen that mismatch. The housing market has been largely frozen since the COVID-era boom ended in 2022, when the Federal Reserve embarked on an aggressive rate-hiking campaign to rein in
The specter of higher interest rates is once again hanging over markets. US stocks were rattled on Wednesday as bond yields spiked to a new post-Great Financial Crisis peak, signaling investors’ rising rate expectations and their unease in holding government debt amid fiscal uncertainty, geopolitical turmoil, and inflation fears. The 10-year US Treasury yield, which
The daily 30-year fixed mortgage rate soared to 7.24% last week, adding yet another cost for homebuyers already facing the double whammy of high housing prices and inflation squeezing their wallets. Freddie Mac’s weekly average rate also climbed to 6.95%, putting borrowing costs at their highest level since January 2025. The increase comes as the
President Donald Trump has renewed his attacks on the Federal Reserve after it hiked its benchmark interest rate Wednesday, but the Fed matters less than broader economic trends when it comes to longer-term borrowing costs, economists say. The economy is growing steadily despite being hit with repeated shocks — and may even be accelerating — while inflation remains stubbornly
The “Bond King” has a word of warning for investors: beware of higher interest rates. Jeff Gundlach, the veteran fixed-income investor and CIO of DoubleLine Capital, laid out his latest outlook for markets at an event in Manhattan on Thursday. Treasury yields have spiked to nearly two-decade highs in recent weeks, but rates have the
Markets and analysts are abuzz over the first Fed interest-rate hike since the second Trump administration. On Wednesday, the Federal Reserve raised rates by a quarter point, its first hike in three years, as officials sought to curb inflation. Kevin Warsh, the Federal Reserve Chair, said that the move would not immediately bring down individual
