US mortgage rates have climbed to 7.12% for the 30-year fixed loan, the highest level in over two years, according to the Mortgage Bankers Association. This represents a 15 basis point increase from the prior week and a full percentage point rise since late February. The jump has been driven by rising Treasury yields and geopolitical tensions, notably the US-Israeli military strikes on Iran that have roiled global energy markets. Purchase applications have declined alongside refinancing activity, while adjustable-rate mortgages have gained popularity as borrowers seek lower initial payments. The housing market faces a « lock-in effect » as existing homeowners with sub-4% pandemic-era mortgages have little incentive to sell.
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