Mortgage Rates Soar to 7.12% Amid Inflation and Oil Price Pressures

The average US fixed 30-year mortgage rate has reached its highest level in over two years at 7.12 per cent, according to Reuters.

This surge is a result of the Federal Reserve's short-term policy interest rate hike aimed at curbing persistent inflation and rising oil prices that have pushed up underlying residential borrowing benchmarks.

The Mortgage Bankers Association reported an increase in the average contract rate on a 30-year fixed-rate loan by 15 basis points to 7.12 per cent during the week ended September 18, which is the last higher rate recorded was in May 2024.