US mortgage rates hit highest level in 15 months
A noticeable drop in mortgage applications was recorded as housing loan interest rates increased in the US.
According to Mortgage Bankers Association data, the 30-year fixed mortgage rate in the US climbed to 6.97 percent, seeing its highest level since May 2025, while applications decreased by 4.1 percent.
Decline Seen in Applications
The Mortgage Bankers Association (MBA) shared the mortgage application data for the week ending September 11 with the public.
According to the released data, total mortgage applications in the country decreased by 4.1 percent compared to the previous week.
Changes in Loan Types
During the period examined, mortgage applications for home purchases recorded a 1 percent decline.
In the same week, refinancing applications showed a 9 percent decrease compared to the previous week.
Increase in Interest Rates
The average interest rate for 30-year mortgages in the country rose from 6.85 percent to 6.97 percent.
During the same period, the average interest rate for 15-year mortgages also increased from 6.17 percent to 6.30 percent.
Market Concerns and Expert Assessment
MBA Vice President Joel Kan emphasized that rising energy prices and high inflation are having an impact on the markets.
Kan stated that with the 10-year US Treasury yield approaching the 5 percent threshold, mortgage rates have reached their highest level since May 2025.