The average US 30-year fixed mortgage rate rose 15 basis points to 7.12% in the week ended September 18, its highest level since early May 2024, according to the Mortgage Bankers Association. The move tracked an increase in Treasury yields, with the 10-year note holding near its highest level since 2007, as markets reacted to the Federal Reserve’s 25-basis-point rate hike and indications that further increases may follow. Additional Fed officials have also adopted a hawkish stance, reinforcing expectations of continued monetary tightening. Since the US and Israel began strikes against Iran in late February, mortgage rates have climbed by more than 100 basis points.
Against this backdrop, total mortgage applications fell 1.5%, marking a third consecutive weekly decline. Refinancing applications dropped 2.6%, while applications for home purchases slipped 0.8%.
