US mortgage rates soar to levels unseen since 2002

Mortgage interest rates in the United States have reached their highest levels since 2002, with the 30-year fixed rate averaging 7.09%. This increase is attributed to a strong economy reflected in factors such as consumer spending and wage growth, as well as an elevated 10-year treasury yield due to concerns about the US debt load and long-term rate expectations.

The real estate industry may continue to face a slowdown in home purchases as higher mortgage rates deter potential buyers, despite the underlying strong economy indicating sustained demand.