US mortgage market sees rates climb to 7%, highest in two years

U.S. mortgage market: The U.S. mortgage market covers home-loan borrowing, lending, refinancing, and the pricing of residential mortgages. It is relevant here because the average 30-year fixed mortgage rate rose to 7.12% for the week ended September 18, its highest level since May 2024, according to the Mortgage Bankers Association. Mortgage Bankers Association: The Mortgage Bankers Association is a U.S. trade association representing the real-estate finance industry and publishes data on mortgage applications and borrowing conditions. Its weekly survey provided the rate cited in the news report, documenting a sharp increase in 30-year mortgage costs. Rate trend: Freddie Mac separately reported that the average 30-year fixed mortgage rate reached 6.95% for the week ending September 17, extending a recent series of weekly increases. Market drivers: Recent reporting linked the rise in mortgage rates to higher Treasury yields following Federal Reserve tightening and increases in oil prices. Borrowing conditions: Mortgage rates have remained materially elevated compared with the same period a year earlier, increasing the financing burden for prospective homebuyers and refinance borrowers.