US mortgage rates climbed for a fourth straight week, rising to the highest since August and denting refinancing and home purchase activity.
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The contract rate on a 30-year mortgage increased 14 basis points to 6.57% in the week ended March 27, according to Mortgage Bankers Association data released Wednesday. In the last four weeks, the rate has surged nearly half a percentage point, the biggest advance since 2024.
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The group’s index of mortgage applications for home purchases fell for a second week, while a measure of refinancing tumbled another 17.3%.
Mortgage rates, which are tied to US Treasury yields, have turned up sharply as the war in Iran sparks concerns of higher inflation. The tailwind that slightly lower borrowing costs at the start of the year had offered a struggling housing market has essentially dissipated.
The MBA survey, which has been conducted weekly since 1990, uses responses from mortgage bankers, commercial banks and thrifts. The data cover more than 75% of all retail residential mortgage applications in the US.