Concerns Over Inflation... US Mortgage Rates Also Surge Sharply

30-Year Average Interest Rate 2.99%

[Image source=AP Yonhap News]

[Asia Economy Reporter Kim Suhwan] As U.S. Treasury yields have been rising for several months, increasing inflationary pressures, mortgage rates in the U.S. have surged sharply. With expectations of a stock market correction due to inflationary pressures, market attention is focusing on the future response measures of the U.S. Federal Reserve (Fed).

According to Bankrate, a financial market research firm, as of the 19th (local time), the average 30-year mortgage rate in the U.S. reached 2.99%, approaching 3%. This marks an increase just 13 days after hitting a historic low of 2.8% on the 10th. Major foreign media analyzed this by stating, "As COVID-19 vaccinations have expanded recently, the situation has calmed, and expectations for economic recovery have grown, steadily raising the possibility of inflation. Consequently, with expectations that the Fed will raise interest rates, mortgage rates are also under upward pressure."

In fact, U.S. Treasury yields have been continuously rising since August last year, increasing the likelihood of inflation. As of the 19th, the 10-year U.S. Treasury yield recorded 1.35%, recovering to pre-COVID-19 pandemic levels.

With the possibility of rising home prices due to inflationary pressures, concerns about a significant increase in household burdens for homeowners have also grown. According to the National Association of Realtors, the total number of home sales and the median home price in the U.S. rose by 24% and 14.1%, respectively, in January compared to the same period last year.

This content was produced with the assistance of AI translation services.