US mortgage rates rise to highest level since last August, while demand for home purchases and refinancing declines.

Last week, mortgage rates in the United States rose to the highest level since August of last year, leading to a slowdown in home buying activity and a sharp decline in refinancing applications. Data released by the Mortgage Bankers Association (MBA) on Wednesday showed that the average contract interest rate for 30-year fixed-rate mortgages rose by 9 basis points to 6.65% for the week ending May 22. Since the end of February when the Iran conflict erupted, this rate has climbed by over 0.5 percentage points. MBA's refinancing index fell by over 18%, hitting a nearly one-year low, while the purchase application index declined for a second consecutive week. The 10-year US Treasury bond yield, which serves as an indicator for mortgage rate trends, surged to its highest level since January of last year on Tuesday due to increased inflation concerns stemming from the Middle East conflict. Since 1990, MBA has conducted this survey weekly, collecting data from mortgage bankers, commercial banks, and savings institutions. This data covers over 75% of retail residential mortgage applications in the United States.