US 30-year mortgage rates rise to 7.49% — CNBC

In the United States, the average contract rate for a 30-year fixed-rate mortgage rose from 7.30% to 7.49% last week, the highest level in nearly three years. Amid rising borrowing costs, demand for home purchases and mortgage refinancing continued to decline, CNBC reports.

Fewer mortgage applications

Total mortgage application volume fell by 4.2% compared with the previous week, according to the seasonally adjusted Mortgage Bankers Association index. The 7.49% rate applied to 30-year fixed loans with conforming balances of up to $832,750 and a 20% down payment.

The cost of points, including the origination fee, rose from 0.75 to 0.84. The number of refinancing applications decreased by 8% over the week and was 56% lower than in the same period a year earlier.

Mortgage Bankers Association economist Joel Kan noted that at such rates, few homeowners have an incentive to refinance their existing loans. According to him, rates are about one percentage point higher than a year ago, while refinancing applications have fallen to their lowest level since 2025.

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Demand for home purchases is also falling

Mortgage applications for home purchases fell by 2% over the week and by 15% year-on-year. Applications to purchase homes through U.S. Federal Housing Administration programs saw the largest decline, falling by 6%.

The share of adjustable-rate mortgage applications remained at 10.3%. Such loans offer a lower initial rate, but after the fixed period ends, it may move in either direction. During the first years of the pandemic, when fixed mortgage rates reached record lows, the share of such applications was less than 3%.

According to a separate Mortgage News Daily survey, rates declined slightly this week: the average figure for lenders stood at 7.56%. However, it remains close to the highest levels since 2003.