US mortgage rates climb to 7.12%, highest level in over two years

The 30-year fixed mortgage rate hit 7.12% for the week ending September 18, according to data released by the Mortgage Bankers Association on September 23. That’s a 15 basis point jump from the prior week and the highest reading since May 2024. For anyone trying to buy a home right now, the math just got considerably worse. A full percentage point increase in mortgage rates since late February means thousands of dollars more in annual interest payments on a typical home loan. The numbers behind the squeeze The MBA’s figures weren’t the only data point flashing red. Freddie Mac’s own weekly survey, published slightly earlier, pegged the 30-year fixed average at 6.95% as of September 17. That was up from 6.76% the prior week and marked the highest level since January 2025. The gap between the two surveys is methodological, not contradictory. MBA tends to capture rates with points and fees included, while Freddie Mac’s approach differs slightly. Applications for home purchases have declined alongside the rate increases. Refinancing activity, which briefly picked up when rates dipped earlier this year, has also pulled back. The one pocket of growth sits in adjustable-rate mortgages, wh...