US Mortgage Rates Hit Four-Week High at 6.79%

The average contract interest rate for 30-year fixed-rate mortgages rose to 6.79%, marking the highest level in four weeks. According to the Mortgage Bankers Association, this increase is driven by investor concerns regarding inflation and growing global deficits, which have pushed yields higher across the globe.

While total mortgage application volume grew slightly by 0.8%, borrowing patterns are shifting toward riskier products. The share of adjustable-rate mortgages reached 8%, the highest level in five weeks, as borrowers seek lower initial rates to offset the rising cost of fixed loans.

Refinance applications fell by 1% for the week and remain 19% lower than the same period last year. High interest rates have reduced the incentive for homeowners to refinance, except in cases where they are extracting equity from their properties.