U.S. Mortgage Rates Reach Highest Level Since August, Impacting Housing Activity

U.S. mortgage rates have risen for the fourth consecutive week, reaching their highest level since August of last year, according to Jin10. The Mortgage Bankers Association reported on Wednesday that the 30-year mortgage contract rate increased by 14 basis points to 6.57% for the week ending March 27. Over the past four weeks, this rate has climbed nearly 0.5 percentage points, marking the largest increase since 2024. The association's index for home purchase mortgage applications declined for the second week in a row, while the refinancing index fell by 17.3%. Mortgage rates, which are linked to U.S. Treasury yields, surged following inflation concerns triggered by the war in Iran. Earlier in the year, lower borrowing costs had supported the struggling real estate market, but this benefit has largely dissipated.