Pakistan · World · Independent Digital Newsroom
Applications are at their lowest level since February 2025 and have fallen by almost half since the beginning of the year.“Very few homeowners have an incentive to refinance at these rates, and the jump in borrowing costs has caused many potential borrowers to step back from the purchase market,” Joel Kan, vice president and deputy chief economist at the Mortgage Bankers Association, said in a press release.Mortgage rates are closely….
Earlier this week, those hit a 24-year high of 5.3 percent amid surging oil prices tied to ongoing tensions with Iran.Meanwhile, the yield on 30-year Treasury bonds rose to its highest level since 2002, at 5.7 percent on Wednesday.Mortgage rates have jumped since late February, when the US and Israel first struck Iran.
Since the strikes, mortgage rates have climbed 1.4 percent.
Inflation, which has risen by 3.4 percent from a year ago, is also putting pressure on mortgage rates.It comes as the cost of living is top of mind for voters as they approach the congressional midterm elections that could decide the balance of power in Washington, DC.
According to a Reuters/Ipsos poll in late August, 47 percent of voters said that the cost of living was the single most important issue ahead of the midterms.In a separate Reuters/Ipsos poll in September, 17 percent of voters said they approved of US President Donald Trump’s handling of cost of living-related issues.
Rising borrowing costs have pushed mortgage applications to their lowest level since February 2025.
