The average contract interest rate for a 30-year fixed-rate mortgage reached 6.97% for the week ending September 11, marking a 12-basis-point increase from the previous week. This figure represents the highest level recorded since May 2025, with rates rising approximately 88 basis points since late February.
Data from the Mortgage Bankers Association indicates that total mortgage applications declined by 4.1% week-over-week. The purchase index saw a 0.8% decrease, while the refinance index experienced a significant drop of 8.8%, reaching its lowest point since May 2025.
A separate survey by Freddie Mac reported the 30-year fixed average at 6.76% for the period ending September 10, an increase of 5 basis points. Market analysts attribute the upward pressure on rates to rising energy costs and inflation concerns linked to the conflict between Israel and Iran.
Ten-year Treasury yields have neared 5%, influencing mortgage rates which typically track these yields. For a loan of $400 000, the shift from a 6.1% rate to 6.97% results in an increase of hundreds of dollars in monthly interest payments for borrowers.
