Inflationary pressure hits the US housing market! US mortgage rates reach nearly a year high, and mortgage application volume hits a five-month low.

Last week, mortgage rates in the United States rose to the highest level since August 2025, while mortgage loan applications fell to the lowest level since February of this year. According to the latest weekly data released by the Mortgage Bankers Association (MBA) of the United States on Wednesday, the average contract interest rate for 30-year fixed-rate mortgages rose by 7 basis points to 6.65% in the week ending July 10. At the same time, the association's mortgage application index decreased by 7.3%. The rise in mortgage rates and the decline in application volume indirectly reflect how inflation is impacting the U.S. housing market - investors widely expect the Federal Reserve to continue raising benchmark interest rates in the coming months to counter price pressure from the Iran conflict. Federal Reserve Chairman Kevin Wash specifically pointed out during his testimony before Congress on Tuesday that, against the backdrop of a strong overall economic performance in the United States, the real estate market has become a clear weak spot. He stated that the persistently high 30-year fixed-rate mortgage is partly due to "inflation remaining above the Fed's target level". Wash then added, "I have always firmly believed in the American Dream, and owning a first home and applying for a mortgage is an important step towards achieving this dream. We will do everything in our power to support this goal."