U.S. mortgage interest rates rose to their highest level in a year last week, further curbing demand for home loans in an already sluggish housing market. According to data released on Wednesday, interest rates on 30-year fixed mortgages rose 5 basis points to 6.81% for the week ending July 31. Interest rates fell to their lowest level since 2022 on the eve of the outbreak of war in Iran at the end of February. Since then, interest rates have continued to rise as the conflict boosted energy prices and heightened concerns about inflation. The result of this change is weakening demand for loans. The MBA home purchase loan application index, which measures loan applications, fell 3.6% from the previous week to its lowest level in five months; the refinancing index also fell 1.9% to its lowest level since mid-2025.

U.S. mortgage interest rates rose to their highest level in a year last week, further curbing demand for home loans in an already sluggish housing market. According to data released on Wednesday, interest rates on 30-year fixed mortgages rose 5 basis points to 6.81% for the week ending July 31. Interest rates fell to their lowest level since 2022 on the eve of the outbreak of war in Iran at the end of February. Since then, interest rates have continued to rise as the conflict boosted energy prices and heightened concerns about inflation. The result of this change is weakening demand for loans. The MBA home purchase loan application index, which measures loan applications, fell 3.6% from the previous week to its lowest level in five months; the refinancing index also fell 1.9% to its lowest level since mid-2025.