US 30-Year Mortgage Rate Jumps to 7.12%, Highest Since May 2024

The average 30-year fixed-rate mortgage rose 15 basis points to 7.12% in the week ended September 18, the Mortgage Bankers Association said on September 23, the highest level since May 2024. The increase follows the Federal Reserve's quarter-point rate hike to a 3.75%-4.00% range and rising oil prices tied to US-Israeli strikes on Iran that began in late February, which have pushed up Treasury yields underpinning residential borrowing costs. Mortgage rates have climbed more than a full percentage point since the strikes began. The MBA reported that the rate increase drove down refinancing and home purchase applications and pushed more borrowers toward adjustable-rate mortgages, which accounted for 9.8% of applications last week. Fed policymakers projected at least one more rate increase by year-end, and traders are betting on further hikes.