US Mortgage Rates Log Biggest Weekly Jump in Four Years as Treasury Yields Breach 5%

US mortgage rates surged in the latest weekly reading, recording their largest single-week increase in four years, as a relentless selloff in the Treasury market pushed the 10-year yield as high as 5.34% and the 30-year yield to 5.69%. The average 30-year fixed mortgage rate climbed to 7.6%, the highest level since late 2023, extending a move driven by persistent inflation concerns tied to rising energy prices stemming from conflicts in Iran and Ukraine. Over the three months through late September, the 10-year Treasury yield posted its biggest quarterly surge since 1994.

The spike in yields is reshaping the mortgage-backed securities market. Investors pulled roughly $2.4 billion from mortgage ETFs as 5% Treasury yields made MBS comparatively less attractive, with products such as the Simplify MBS ETF among those recording notable outflows. The shift reflects a broader repricing of rate-sensitive assets as bond market turmoil deepens.

The Federal Reserve raised its benchmark rate by a quarter point at its September 2026 meeting, citing expanding inflation pressures, a move that added fuel to the rise in longer-term yields. Multiple real estate and mortgage-related companies, including Armour Residential REIT, Pebblebrook Hotel Trust, EastGroup Properties, Century Communities, SmartStop Self Storage REIT, and KBS Real Estate Investment Trust III, filed 8-K disclosures with the SEC on October 1, signaling active corporate activity across the rate-sensitive real estate sector as conditions tighten.