US mortgage rates hit three-year high

According to data from the Mortgage Bankers Association (MBA), the average rate on a 30-year mortgage increased from 7.12% to 7.30% last week, reaching its highest level since November 2023. The average rate on a 15-year mortgage also climbed from 6.43% to 6.56%.

Higher borrowing costs also weighed on mortgage demand. Mortgage applications fell 6% on a weekly basis, with applications for home purchases declining 4% and refinancing applications dropping 9%. MBA Vice President Joel Kan said the rapid rise in interest rates has prompted consumers seeking mortgages to wait on the sidelines.