Overview
- The average 30-year fixed mortgage rose to 7.12% for the week ended Sept. 18, the Mortgage Bankers Association said, marking the highest reading in more than two years.
- Higher rates cut loan demand with total mortgage applications falling and refinance requests plunging to levels far below last year, according to MBA weekly data.
- More borrowers turned to adjustable-rate mortgages to lower initial payments, with the ARM share of applications climbing to about 9.8% as fixed rates moved above 7%.
- Sellers are losing leverage because fewer buyers are committing to purchases, so concessions and price adjustments have risen and completed home sales have declined in recent data.
- The rise in mortgage costs tracks higher 10-year Treasury yields driven by Fed policy and energy-linked geopolitical tensions, a shift that keeps affordability strained and could further slow the housing market this fall.