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Mortgage Rates Surge to Yearly High, Chilling Refinancing
18 Mar
Summary
- 30-year mortgage rates climbed to 6.30% last week, the highest this year.
- Refinancing applications dropped 18.5%, marking the steepest decline this year.
- Rising yields on US Treasuries are linked to inflation concerns from global events.
In the week ending March 13, 2026, US mortgage rates climbed to a new yearly high, with the contract rate on a 30-year mortgage reaching 6.30%. This represents an 11-basis-point increase, following a similar rise the previous week. The surge in home financing costs is closely tied to escalating yields on 10-year US Treasury notes, amid growing concerns about inflation pressures stemming from geopolitical events.
Refinancing activity has been significantly impacted, with applications plunging 18.5% during the same period, the largest drop observed this year. While purchase activity showed a slight increase for a third consecutive week, the upward trend in mortgage rates poses a potential threat to demand ahead of the critical spring selling season. Federal Reserve policymakers are anticipated to maintain current interest rates at their upcoming meeting, but attention is focused on their outlook regarding oil supply shocks and their implications for both inflation and economic growth.
