Mortgage rates in the US reach a nearly three-year high
As housing loan costs increase in the United States, high interest rates are exerting pressure on demand, leading to a decrease in applications.
In the US, the average interest rate for a 30-year fixed-rate mortgage rose to 7.3 percent, marking the highest rate in nearly three years, while total mortgage applications nationwide experienced a significant decline.
Drop in Applications
According to data released by the Mortgage Bankers Association (MBA), total mortgage applications for the week ending September 25 decreased by 6 percent compared to the previous week.
Category-Based Decline
Based on seasonally adjusted data, mortgage applications for home purchases fell by 4 percent, while refinancing applications declined by 9 percent.
Increase in Interest Rates
The average interest rate for a 30-year mortgage in the country rose from 7.12 percent to 7.3 percent. During the same period, the average interest rate for a 15-year mortgage also climbed from 6.43 percent to 6.56 percent.
Expert Assessments
MBA Vice President Joel Kan stated that rising interest rates have prompted prospective borrowers to wait. It was noted that the average interest rate reached its highest level since November 2023.