United States mortgage rates rise to 6.19%, the biggest increase since September.

Mortgage rates in the United States recorded their largest increase since September last week, causing a setback for the real estate market that has benefited from a decrease in financing costs this year. Data released by the Mortgage Bankers Association on Wednesday showed that the contract interest rate for a 30-year mortgage rose by 10 basis points to 6.19% for the week ending March 6. Prior to this, rates had been at their lowest since 2022 for two consecutive weeks. With the disruption of oil supplies due to the Iran war and resulting inflation concerns, the rise in borrowing costs is parallel to the sharp increase in the 10-year US Treasury yield, which is related to the trend of mortgage rates. The low rate environment in recent weeks, combined with concerns that housing financing costs may further rise, may have prompted some potential buyers to take action last week instead of waiting and see. The indicator measuring home purchase applications rose by 7.8% according to MBA, marking the largest increase since early January. MBA data also showed a slight increase in refinancing activity, except for two weeks, it has been increasing since the beginning of this year. With affordability constraints starting to ease, the market is showing signs of recovery. Data released on Tuesday showed an increase in existing home sales in February. However, if housing financing costs continue to rise, it may dampen demand as the key spring sales season approaches.