U.S. mortgage rates exceed 7%, reaching a new high since May of last year
As of January 10, the MBA 30-year fixed mortgage rate in the United States rose to 7.09%, continuing a months-long upward trend and reaching the highest level since early May of last year. Data shows that since late September of last year, this mortgage rate has increased by nearly 1 percentage point, which may suppress the U.S. real estate market. U.S. mortgage rates follow the trend of U.S. Treasury yields. On Tuesday, the benchmark 10-year U.S. Treasury yield rose to its highest level since October 2023. Since mid-December of last year, borrowing costs in the U.S. have continued to climb due to the resilience of the U.S. economy, which has cooled expectations for interest rate cuts by the Federal Reserve, as well as concerns that policies proposed by the Trump administration will keep inflation high. High housing financing costs and elevated home prices are jointly affecting affordability and discouraging potential buyers. However, data released on Wednesday showed that the MBA purchase application index in the U.S. rose by nearly 27% for the week ending January 10, while the refinancing index surged by 43.5%. Although these figures are seasonally adjusted, they remain susceptible to significant fluctuations in the weeks surrounding the holidays
According to the Zhitong Finance APP, the MBA 30-year fixed mortgage rate in the United States rose to 7.09% for the week ending January 10, continuing a months-long upward trend and reaching the highest level since early May of last year. Data shows that since late September of last year, this mortgage rate has increased by nearly 1 percentage point, which may suppress the U.S. real estate market.
U.S. mortgage rates follow the trend of U.S. Treasury yields. On Tuesday, the benchmark 10-year U.S. Treasury yield rose to its highest level since October 2023. Since mid-December of last year, borrowing costs in the U.S. have continued to climb due to the resilience of the U.S. economy, which has cooled expectations for interest rate cuts by the Federal Reserve, as well as concerns that policies proposed by the Trump administration will keep inflation high. High housing financing costs and elevated home prices are jointly affecting affordability and discouraging potential buyers.
However, data released on Wednesday showed that the MBA mortgage application index in the U.S. rose nearly 27% for the week ending January 10, and the refinancing index surged 43.5%. Although these figures are seasonally adjusted, they are still prone to significant fluctuations in the weeks before and after the holidays