US 30-year mortgage rate jumps to 7.12%, highest in over two years

The average rate on a 30-year fixed US mortgage jumped 15 basis points to 7.12% in the week ended 18 September, the Mortgage Bankers Association said on Wednesday, its highest level since May 2024.

Reuters reported the rise follows the Federal Reserve’s decision last week to lift its benchmark interest rate by a quarter of a percentage point to the 3.75%–4.00% range, its first increase in three years, as it tries to put inflation on what it called a “timelier” path back to the 2% target.

Mortgage rates track US Treasury yields, which are sensitive to oil prices and the inflation threat they pose. Rates have risen more than a full percentage point since joint US-Israeli strikes against Iran began pushing up the global oil price in late February, putting a squeeze on prospective homebuyers, Reuters reported, with inflation running above the Fed’s 2% goal for five and a half years.

The MBA said last week’s rise in rates led to a decline in refinancing and home purchase applications, and pushed more borrowers toward adjustable-rate mortgages, which accounted for 9.8% of applications last week.

Nearly all Fed policymakers projected at least one more rate increase by the end of the year, Reuters reported, signalling further pressure on US borrowing costs ahead.

Sources

• Reuters — US fixed 30-year mortgage rate jumps to 7.12%, MBA says: https://www.reuters.com/business/us-fixed-30-year-mortgage-rate-jumps-712-mba-says-2026-09-23/