The Strategist

US mortgage rates exceed 7.5% for the first time in 23 years

10/05/2023 - 10:01

The Mortgage Bankers Association (MBA) declared that average 30-year mortgage rates in the United States reached their highest level since November 2000 during the week ending September 29, after increasing by 12 basis points from the week before.

Last week, the average interest rate for 30-year home equity loans with maximum loan amounts of $726,200 was 7.53%. The rate has been growing four weeks in a row.

Mortgage application volume in the US dropped by 6% last week, the most since April, and to the lowest level seen since 1996. This includes a 6.7% decline in requests for mortgage refinancing.

According to MBA Deputy Senior Economist Joel Khan, "activity levels are at their lowest since 1995, as active rate increases have pushed a significant share of potential buyers out of the market."