30-Year Mortgage Rate Hits 7.45%. What Does It Mean for Crypto?

The average 30-year fixed US mortgage rate jumped 19 basis points to 7.45% on Thursday. Mortgage News Daily recorded the move in its daily survey of brokers and lenders.The jump tracks a broader selloff in US government bonds. For crypto markets, the Treasury yield at the center of that selloff carries the clearer signal.Treasuries Drag the 30-Year Mortgage Rate HigherThe 30-year rate had sunk as low as 5.99% in late February, according to CNBC. It began rising once the Iran war started, then accelerated after the Federal Reserve (Fed) September.Mortgage News Daily Chief Operating Officer Matthew Graham traced the climb since September 10 to three drivers. He pointed to Fed commentary, higher oil prices, and stronger economic data.However, Graham could not find a clear catalyst for Thursday afternoon’s bond selloff. “No obvious catalyst. Explanations require concocting narratives and then defending them. There’s no objective, irrefutable way to connect the dots today. Sellers decided to sell… a lot,” he said. That selloff matters because mortgage rates tend to track longer-dated Treasury yields. The 10-year yield closed at 5.18% on Thursday, up from 4.96% on Tuesday, according to the Treasury.The Kobeissi Letter blamed inflation for the bond rout. It cited a barrel and record diesel prices. It also noted consumers expect inflation near 4.6% over the next year.Follow us on X to get the latest news as it happensCrypto Pays the Price of Higher YieldsFor crypto, the key link runs through those yields. When government debt pays more, holding Bitcoin carries a higher opportunity cost.That pressure showed on Wednesday. Bitcoin fell below $84,000 after strong US business activity data pushed the 10-year yield past 5%.By Friday, BTCtraded at $84,590, posting a modest gain over the past 24 hours, BeInCrypto Markets data shows. Altcoins moved faster in the rebound. Solana gained 2.2%, and XRP added 3.4% over the same period.This leaves an open question. Can crypto buyers keep absorbing pressure from a Treasury market paying more than 5%?Subscribe to our YouTube channel to watch leaders and journalists provide expert insights