US Mortgage Rates Hit 7.09%, Highest Level Since May 2024

Rising Treasury yields and inflation concerns drive mortgage rates upward, straining affordability for homebuyers.

The average 30-year fixed mortgage rate has climbed to 7.09%, marking its fifth consecutive weekly increase.
Despite the Federal Reserve's rate cuts, mortgage rates are rising due to persistent inflation concerns and higher Treasury yields.
Mortgage applications for home purchases are down 2% year-over-year, while refinancing applications have risen by 22%, though volumes remain historically low.
Limited housing supply and high prices continue to challenge prospective homebuyers, with more inventory attributed to longer market times rather than new listings.
The upcoming Consumer Price Index report is expected to influence interest rate trends, with inflation projected to rise to 2.9% for December.