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Mortgage Rates Hit August Highs, Cooling Housing Market
27 May
Summary
- Thirty-year mortgage rates climbed 9 basis points to 6.65%.
- This marks the highest rate recorded since August.
- Home-purchase activity and refinancing have significantly declined.

Last week, US mortgage rates ascended to their highest level since August, exerting a cooling effect on home-purchase activity. The contract rate for a 30-year mortgage rose by 9 basis points, reaching 6.65% for the week ending May 22, according to Mortgage Bankers Association data.
This upward trend in borrowing costs has directly led to a sharp pullback in refinancing applications. Potential homebuyers and homeowners looking to refinance are finding the current rate environment less favorable, contributing to a broader slowdown in the real estate market.