Mortgage rates hit highest point since 2023 as Treasury yields rise

The useful part

Mortgage rates are at their highest point in nearly three years as turmoil in the bond market continues. Treasury bonds continued selling off on Thursday, driving yields on the most closely watched bonds to their highest levels since 2002. Over the course of the three months that ended Wednesday, the 10-year yield had its largest quarterly surge since 1994.

How it works

• Stocks declined to the lowest levels of the day after that data was released.
• Late Wednesday, the average 30-year fixed mortgage rate rose to 7.6%, the highest it has been since late 2023.
• At the same time, diesel prices have soared 70% over the same period of time.
• While diesel is not often used by consumers, it is used widely in the shipping and farming sectors, meaning that higher fuel costs can easily trickle down to store shelves.

What to take from it

On Thursday, the average regular gas price in the U.S. Last week, S&P Global reported that "price pressures intensified in September" for businesses at the fastest rate in four years. While it said that the industry remained steady, it also flagged "a notable increase" in costs.

Details worth keeping

The yield on the 10-year Treasury rose as high as 5.34% in early trading. The 30-year yield spiked to as high as 5.69%. The surge in the 10-year yield is driving U.S.