The average US 30-year fixed mortgage rate rose 15 basis points to 7.12% in the week ended September 18, its highest level since early May 2024, according to the Mortgage Bankers Association. The increase followed a rise in Treasury yields, with the 10-year note remaining near its highest level since 2007, as markets responded to the Federal Reserve’s 25-basis-point rate hike and signals that further increases could follow. Other Fed officials have also struck a hawkish tone, reinforcing expectations of additional tightening. Mortgage rates have risen by more than 100 basis points since the US and Israel began strikes against Iran in late February. Meanwhile, total mortgage applications fell 1.5%, marking a third consecutive weekly decline. Refinancing applications dropped 2.6%, while purchase applications decreased 0.8%.