US mortgage rates rises for first time in four weeks
The contract rate on a 30-year mortgage: up 8 basis points at 6.2% in the week ended Jan 23
[WASHINGTON] US mortgage rates climbed for the first time in four weeks, halting an early-year upswing in home purchase and refinancing activity.
The contract rate on a 30-year mortgage rose eight basis points to 6.2 per cent in the week ended Jan 23, based on Mortgage Bankers Association (MBA) data released on Wednesday (Jan 28). In the previous week, home-financing costs slid to its lowest since September 2024.
The group’s index of mortgage applications for home purchases eased 0.4 per cent in the week ended Jan 23, from a three-year high. Refinancing applications slumped 15.7 per cent, the first drop in 2026.
The decline in activity indicates that potential homebuyers remain sensitive to changes in mortgage rates, as affordability constraints persist.
Home-financing costs are tied to movements in the US Treasury market, and the yield on the 10-year note jumped on Jan 20 amid a rout in Japanese bonds and geopolitical concerns.
The MBA survey, which has been conducted weekly since 1990, uses responses from mortgage bankers, commercial banks and thrifts. The data covers more than 75 per cent of all retail residential mortgage applications in the US. BLOOMBERG
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
