For the fourth consecutive week, mortgage rates in the United States have climbed to their highest levels since August, leading to a decline in both refinancing and home purchase activity.
According to the Mortgage Bankers Association, the average interest rate on 30-year mortgage loans rose by 14 basis points to reach 6.57% in the week ending March 27, following a half-point increase over the past month—the largest jump since 2024.
The rise in financing costs has put pressure on the housing market, as the home purchase applications index declined for the second straight week, while refinancing applications dropped by 17.3%.
Mortgage rates are closely linked to U.S. Treasury yields, which have risen due to inflation concerns tied to developments in Iran. This has weakened the support that lower borrowing costs had provided to the struggling housing market earlier in the year.
This analysis is based on the weekly survey conducted by the Mortgage Bankers Association, which has covered more than 75% of U.S. residential mortgage applications since 1990.
