U.S. Mortgage Rates Rise to 7.12%, Highest Since May 2024
Mortgage applications fell 1.5% week over week as refinancing activity weakened and the Federal Reserve maintained tighter financial conditions.
The average U.S. 30-year fixed mortgage rate climbed to 7.12% for the week ending Friday, Sept. 18, its highest level since May 2024, while higher borrowing costs weighed on mortgage demand and refinancing activity.
The rate rose 15 basis points from 6.97% a week earlier. Total mortgage applications fell 1.5% on a seasonally adjusted basis.
Refinance applications declined 3% from the prior week and were 62% below the same week a year earlier. Adjustable-rate mortgages represented 9.8% of all applications.
A separate weekly measure placed the 30-year fixed rate at 6.95% as of Thursday, Sept. 17, up from 6.76% the previous week. The two readings come from separate surveys and are not directly interchangeable.
Mortgage rates track longer-term borrowing conditions rather than the Federal Reserve’s short-term policy rate. Treasury yields are among the market conditions that influence those longer-term costs.
The Federal Reserve raised its target federal funds range by 25 basis points to 3.75%-4.00% on Wednesday, Sept. 16. The move came as the central bank said inflation remained elevated and that it was seeking a faster return to its 2% goal.
Higher mortgage rates reduce affordability for prospective homebuyers and can discourage refinancing by homeowners who already hold older loans at lower rates.
The two-year U.S. Treasury yield reached a 2026 high of 4.79% on Wednesday, Sept. 23, as Treasury yields continued to rise.
