Mortgage Rates Surpass 7% for First Time Since May 2024

The 30-year fixed-rate mortgage rose to 7.12% for the week ending Sept. 18, the Mortgage Bankers Association said, the highest level since May 2024, as elevated Treasury yields and inflation concerns drive up borrowing costs. The surge compounds affordability pressure with home prices near record highs. MBA chief economist Mike Fratantoni said more buyers are turning to riskier 5/1 adjustable-rate mortgages, which carried rates over 1 percentage point lower than fixed loans. The 30-year rate tracks the 10-year Treasury yield, which hovered near 5% on Sept. 23, up more than a percentage point since late February. Freddie Mac reported the 30-year fixed rate at 6.95% as of Sept. 17 and was set to release updated data on Sept. 24. J.P. Morgan's Richard Shane warned that persistent elevated rates could stall origination growth despite a large pipeline of potential buyers.