U.S. mortgage interest rates exceed 7%, reaching a new high since May last year.

In the week ending January 10, the MBA 30-year fixed mortgage rate in the United States rose to 7.09%, continuing a months-long upward trend to its highest level since early May last year. Data shows that since late September last year, the mortgage rate has increased by nearly 1 percentage point, which could dampen the US real estate market. US mortgage rates follow the trend of US bond yields. On Tuesday, the benchmark 10-year US bond yield rose to its highest level since October 2023. Since mid-December last year, borrowing costs in the United States have continued to rise, as the resilience of the US economy has led to a diminished expectation of a rate cut by the Federal Reserve, as well as concerns that the policies proposed by the Trump administration will lead to persistently high inflation. The high cost of housing financing and the fact that house prices remain high are collectively impacting people's affordability and deterring potential buyers. However, data released on Wednesday shows that in the week ending January 10, the MBA Purchase Applications Index in the United States increased by nearly 27%, while the Refinance Index jumped by 43.5%. Although these data are adjusted for seasonal effects, they are still prone to significant fluctuations in the weeks around the holidays.