US Mortgage Rates Hit Highest Levels Since 2023

Mortgage rates in the United States rose for the sixth consecutive week, reaching their highest levels since November 2023. The average contract interest rate for 30-year fixed-rate mortgages climbed to 7.30%, while some data indicated rates reached as high as 7.58% early this week.

Mortgage Bankers Association reported that these increases led to a 6% drop in weekly mortgage demand. Purchase applications decreased by 4%, while refinance applications fell by 9%. Government-backed FHA and VA refinance applications were particularly hard hit, experiencing double-digit declines.

Despite the rising cost of borrowing, home prices continue to climb. The S&P CoreLogic Case-Shiller index showed a 1.9% national increase in July compared to the previous year. In response to the high fixed rates, borrowers are increasingly opting for adjustable-rate mortgages, which now represent 10.3% of applications, the highest share since October 2025.