US mortgage rates hit their highest since spring 2024
Quick Look
- US mortgage rates rose to 7.12%, reaching their highest since spring 2024.
- An increase of 15 basis points increases pressure on the housing market, helping to reduce demand for mortgage lending among American citizens.
AI-generated summary
Why It Matters
The US housing market is under pressure due to high prices and sluggish sales. Mortgage rates have been rising over the past six months.
U.S. mortgage rates have risen to their highest since the spring of 2024, putting further pressure on a housing market already weighed down by high prices and sluggish sales. According to Bloomberg, by September 18, the indicator increased over the week by 15 basis points, rising above 7 percent per annum, namely to 7.12 percent.
It is noted that rates have been rising since the beginning of the Iranian conflict, that is, for more than six months, against the backdrop of which citizens have stopped liking mortgages and fewer and fewer Americans are applying for them.
Taking into account the first Fed rate increase since 2023 and crossing the psychologically important threshold of 7 percent, demand for it may continue to fall, the material says.
What to Watch
AI outlook — possibilities, not facts
Further decline in demand for mortgage loans
Likely · Within months
Open Questions
- How long will the Fed rate hike cycle last?
