US 30-Year Mortgage Rate Breaks 7%, Hits Over Two-Year High
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According to data from the Mortgage Bankers Association (MBA) released on Wednesday, September 23, the contract rate on a 30-year fixed-rate mortgage rose 15 basis points to 7.12% in the week ending September 18, the highest level since May 2024. The increase adds further pressure to a housing market already strained by high prices and weak sales. The five-year adjustable-rate mortgage fell 13 basis points to 6.1%. Rates have been trending upward since February, when the Iran conflict drove up energy prices and reignited inflation concerns. The Federal Reserve raised its benchmark interest rate for the first time since 2023 last week to curb price pressures. As borrowing costs climb, mortgage applications have declined: the MBA's purchase index fell 0.8% to a four-week low, and the refinance index dropped 2.6% to its lowest since February 2025. Analysts suggest the rate breaching 7% could further dampen demand.
Source report
U.S. mortgage rates have climbed to their highest level in more than two years, further straining a housing market already weighed down by elevated home prices and sluggish sales.
According to data released Wednesday by the Mortgage Bankers Association (MBA), the contract rate on a 30-year fixed-rate mortgage rose by 15 basis points to 7.12% during the week ending September 18. This marks the highest level since May 2024.
In contrast, the rate on a 5-year adjustable-rate mortgage fell by 13 basis points to 6.1%.
Rates have been trending upward since February, when the outbreak of conflict with Iran pushed energy prices higher and reignited concerns over inflation. In an effort to curb price pressures, the Federal Reserve last week raised its benchmark interest rate for the first time since 2023.
As borrowing costs have risen, fewer Americans are applying for home loans. The MBA's Purchasing Index, which measures loan applications, fell by 0.8% to a four-week low. The association's Refinancing Index dropped by 2.6% to its lowest level since February 2025.
With mortgage rates now surpassing the 7% threshold, demand is expected to face further headwinds.
Source
金十数据Neutral / independent
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