US mortgage rates rise to 6-month high

The US long-term mortgage rates rose to a six-month high last week, sending homebuyers’ applications into a sharp decline and significantly undermining refinancing activity.

The average rate on a 30-year fixed-rate mortgage rose eight basis points to 6.97% in the week ended Dec. 27, 2024, according to the Mortgage Bankers Association data released on Thursday.

That sent homebuying applications down 7% to their lowest level since mid-November 2024, with applications to refinance existing mortgages down more than 23%, their lowest level in a year.

Despite the rise in mortgage rates at the end of 2024, separate data from the National Association of Realtors showed that potential homebuyers are becoming more accustomed to a higher-interest environment.