The Mortgage Bankers Association (MBA) reported the average 30-year fixed-rate mortgage reached 7.12%. This interest rate marks the highest level since May 2024.
Federal Reserve interest rate hikes aimed at controlling inflation drove the surge. Rising Treasury yields influenced by higher oil prices also contributed to the increase.
Applications for home purchases and refinancing both declined last week. These rising borrowing costs are putting additional pressure on the U.S. housing market.
Homebuilders like KB Home reported that high rates are increasingly pricing potential buyers out of the market. This trend suggests a potential slowdown for the residential sector as affordability challenges mount.