Mortgage rates in the US have continued to rise, reaching their highest levels since July 2024. For the fourth consecutive week, mortgage demand weakened, with total application volume dropping 3.7% compared to the previous week, as reported by the Mortgage Bankers Association. The average interest rate for 30-year fixed-rate mortgages now stands at 6.99%, slightly up from 6.97%. While refinance applications increased by 2% week-over-week, they remain 6% lower than the same period last year. Purchase mortgage applications fell by 7% for the week and are down 15% year-on-year, reflecting the impact of higher rates and home prices on buyer activity. Despite a greater supply of homes, buyers are hesitant to enter the market. Joel Kan, MBA’s vice president, noted that purchase applications for both conventional and government loans hit their slowest pace since February 2024. Additionally, the Mortgage News Daily reported the 30-year fixed average at 7.14%. Economic factors, such as inflation and job openings, are influencing these rising rates. Key economic data is expected later this week, which may determine the future trajectory of mortgage rates heading into the new year.
