US Treasury Yields Surge Threatens Housing Market

Long‑term U.S. Treasury yields have risen sharply, with the 30‑year rate climbing to its highest level since 2007 and approaching 7 %. The 10‑year yield is projected to break above 5 % as investors demand higher compensation amid reduced Federal Reserve forward guidance and lingering inflation concerns.

The rapid increase in bond yields is raising mortgage rates, which are now near 7 % and have stayed above 6 % since late 2022. Higher borrowing costs and elevated home prices are limiting housing market activity, making the sector the biggest risk from the bond‑rate surge. Analysts note that the speed of the yield rise, combined with large government debt and persistent inflation, could pressure the broader economy if rates remain elevated.