US mortgage interest rates hit 23-year high

The average interest rate for a 30-year mortgage (home loan) in the United States last week recorded its highest level since December 2000, at 7.41 percent.

According to data from the Mortgage Bankers Association (MBA), mortgage applications decreased 1.3 percent in the week ending September 22 compared to the previous week.

The average interest rate for a 30-year mortgage in the country increased from 7.31 percent to 7.41 percent. This rate drew attention as the highest level since December 2000.

In the same period, the average interest rate for a 15-year mortgage rose from 6.62 percent to 6.73 percent, reaching its highest value since July 2001.

In his assessment of the data, MBA Vice President Joel Kan noted that mortgage rates also rose as Treasury yields rose last week.

Noting that the US Federal Reserve (Fed) is expected to keep interest rates high for a longer period of time, Kan stated that potential home buyers and owners continue to feel the impact of high interest rates and, therefore, mortgage applications have decreased.

Kan reported that in the market, which is facing limited stock and declining purchasing power, mortgage applications were down 27 percent annually and refinancing activity was down more than 20 percent compared to last year.