The average 30-year fixed mortgage rate rose 18 bps to 7.30% in the week ended September 25, its highest level since late November 2023, according to the Mortgage Bankers Association. The increase followed another rise in Treasury yields, with the 10-year note near its highest level since 2007 amid persistent energy-driven inflation, a resilient US economy and hawkish Fed signals that strengthened expectations for further rate hikes. Markets are pricing in at least one more Fed hike by year-end, while mortgage rates have risen more than 120 bps since US-Israeli strikes against Iran began in late February. Meanwhile, total mortgage applications fell 6%, marking a fourth straight weekly decline. Refinancing applications dropped 8.7%, while purchase applications fell 4.3%.