US mortgage rate hits highest level since May 2025

The average interest rate on a 30-year mortgage in the US rose to 6.97% last week, its highest level since May 2025, according to data released Wednesday.

Mortgage applications declined 4.1% in the week ending Sept. 11 compared with the previous week, the Mortgage Bankers Association said.

Applications to purchase a home fell 1%, while refinancing applications dropped 9% during the same period.

The average rate on a 30-year mortgage increased to 6.97% from 6.85% the previous week.

The average rate on a 15-year mortgage also climbed to 6.30% from 6.17%.

Joel Kan, vice president and deputy chief economist at the Mortgage Bankers Association, said rising energy prices, persistently high inflation, and continued market concerns about the future course of monetary policy pushed Treasury yields and mortgage rates higher last week.

With the yield on the benchmark 10-year US Treasury note approaching 5%, the average 30-year mortgage rate reached its highest level since May 2025, Kan added.