Mortgage Rates Soar to Highest Level in a Year Amid Inflation Concerns
US mortgage rates have hit their highest level in a year, reaching 6.81% for a 30-year loan last week. This is according to data from the Mortgage Bankers Association (MBA), which showed that rates rose five basis points from the previous week.
The current rate is a significant increase from the lowest levels seen in February, just before the start of the Iran war. Since then, energy prices have risen and inflation concerns have grown, causing mortgage rates to trend upward.
As a result, demand for home loans has decreased. The MBA's purchase index fell 3.6% from the previous week to its lowest level in five months, while its refinancing index dropped 1.9% to its lowest since mid-2025.
The Federal Reserve's decision last week to keep its benchmark interest rate steady was seen as a surprise by some investors, who had expected it to be raised. However, Chairman Kevin Warsh's comments in the post-meeting press conference raised concerns about the Fed's commitment to its 2% inflation goal.