US Mortgage Rates Hit Highest Level Since Late 2023

The average 30-year fixed mortgage rate rose 18 bps to 7.30% in the week ended September 25, its highest level since late November 2023, according to the Mortgage Bankers Association. The increase followed another rise in Treasury yields, with the 10-year note near its highest level since 2007 amid persistent energy-driven inflation, a resilient US economy and hawkish Fed signals that strengthened expectations for further rate hikes. Markets are pricing in at least one more Fed hike by year-end, while mortgage rates have risen more than 120 bps since US-Israeli strikes against Iran began in late February. Meanwhile, total mortgage applications fell 6%, marking a fourth straight weekly decline. Refinancing applications dropped 8.7%, while purchase applications fell 4.3%.

The average contract rate for a 30-year fixed mortgage in the US rose by 15 basis points to 7.12% in the week ended September 18, reaching its highest level since early May 2024, according to the Mortgage Bankers Association. The increase followed a rise in Treasury yields, with the 10-year note remaining close to its highest level since 2007, after the Federal Reserve raised its policy rate by 25 basis points, marking its first rate increase in three years. Fed Chair Kevin Warsh also signaled that further rate increases could follow in the coming months, while other policymakers have since delivered hawkish remarks, reinforcing expectations that additional tightening remains possible. Mortgage rates have risen by more than 100 basis points since the US and Israel began strikes against Iran in late February. Meanwhile, total mortgage applications fell 1.5%, marking a third consecutive weekly decline. Refinancing applications dropped 2.6%, while purchase applications decreased 0.8%.

The average contract rate for a 30-year fixed mortgage in the US rose to 6.97% in the week ended September 11, its highest level since May 2025, according to the Mortgage Bankers Association. The increase followed a rise in Treasury yields, with the 10-year note briefly touching 5% and approaching its highest level since 2007, as renewed Middle East tensions and stronger-than-expected US inflation data heightened inflation concerns and reinforced expectations that the Federal Reserve will deliver its first rate hike since 2023 on September 16. Mortgage rates have risen 88 basis points since the US and Israel began strikes against Iran in late February. Meanwhile, total mortgage applications fell 4.1%, extending the previous week’s 2.7% decline and marking the steepest weekly drop since July. Refinancing applications decreased 8.8%, while purchase applications fell 0.8%.