A combination of rising oil prices, elevated wholesale inflation, and former President Trump's pledge to send $5,000 checks to every American adult if Republicans retain Congress in November fueled a continued bond market selloff, pushing mortgage rates above 7% for the first time in over a year.

According to Mortgage News Daily, the average national mortgage rate hit 7.07% on Thursday, up 10 basis points from the previous day. Mortgage rates closely track the 10-year Treasury yield, which climbed 8 basis points on Thursday to break above 4.9%, marking a multi-year high.

Recent sessions have seen volatile swings in both Treasury yields and mortgage rates, with the 10-year yield surging more than 12 basis points in less than a week. The Treasury Department expanded its bond buyback program, but the move had minimal impact.

Escalating tensions between the U.S. and Iran pushed Brent crude above $100 for the first time since May, intensifying inflation worries. Thursday's producer price index for August came in line with economist forecasts but exceeded July's 0.1% monthly gain.

"Every round of heightened tensions is replaying the same dynamic we've seen since late February: higher oil prices, growing inflation concerns, and a bond market that re-prices accordingly," said Anthony Smith, senior economist at Realtor.com, in a statement. Trump's promise to distribute $5,000 to every adult if Republicans hold their majorities in both chambers following the midterms also contributed to Thursday's bond selloff.

The proposal faces long odds, requiring legal review and congressional approval. Against the backdrop of widespread worries over the U.S.'s $40 trillion national debt, such a policy could further stoke inflationary pressures.

Freddie Mac's weekly mortgage survey, which covers data through Wednesday, showed a slight uptick in rates this week, rising to 6.76% from 6.71%.

Where to get started

As of Thursday, September 10, current purchase mortgage rates (latest Zillow data, national averages, rounded to two decimal places):

30-year fixed: 6.64%

20-year fixed: 6.53%

15-year fixed: 6.04%

5/1 adjustable-rate mortgage (ARM): 6.73%

7/1 adjustable-rate mortgage (ARM): 6.52%

30-year VA loan: 6.20%

15-year VA loan: 5.83%

5/1 VA ARM: 6.10%

Refinance rates on the same date

As of Thursday, September 10, mortgage refinance rates (latest Zillow data, national averages, rounded to two decimal places):

30-year fixed: 6.81%

20-year fixed: 6.70%

15-year fixed: 6.09%

5/1 ARM: 6.46%

7/1 ARM: 6.53%

30-year VA refinance: 6.32%

15-year VA refinance: 5.89%

5/1 VA ARM refinance: 6.00%

Like purchase loans, these are all national averages. Refinance rates typically run higher than purchase rates, though that's not always the case.