For the fourth consecutive week, mortgage interest rates in the United States continued to rise, reaching their highest levels since last August, negatively affecting both refinancing activity and home purchases.
According to data from the Mortgage Bankers Association, the interest rate on 30-year fixed-rate mortgages increased by 14 basis points to reach 6.57% for the week ending March 27. Over the past four weeks, these rates have risen by half a percentage point, marking the largest increase since 2024.
This rise in financing costs has put noticeable pressure on the housing market. The Home Purchase Applications Index fell for the second consecutive week, while refinancing applications dropped an additional 17.3%.
Mortgage rates are closely linked to U.S. Treasury yields, which have surged amid growing concerns about higher inflation rates due to tensions arising from the Middle East’s conflicts. As a result, the positive impact of lower borrowing costs that had supported the housing market at the beginning of the year has faded, leaving a market already experiencing weakness.
It is worth noting that the weekly survey conducted by the Mortgage Bankers Association since 1990 relies on data from mortgage lenders, commercial banks, and savings institutions, covering more than 75% of total residential mortgage applications in the country.
