US mortgage rates rose for a sixth consecutive week, approaching the highest level in almost three years and making it harder for prospective homebuyers to enter the market.

Data released on Wednesday by the Mortgage Bankers Association showed the contract rate on a 30-year fixed-rate mortgage climbed 18 basis points to 7.30% in the week ended September 25, the highest since November 2023.

The rate on a 5-year adjustable-rate mortgage surged 37 basis points to 6.47%, the highest in more than two years.

Rising financing costs are putting additional pressure on an already struggling US housing market. The MBA purchase index, which measures applications for home loans, fell 4.3% to its lowest level since April 2025.

The refinancing index dropped another 8.7%, extending its decline since mid-August.

Mortgage rates are closely tied to the yield on the 10-year US Treasury note. Treasury yields have continued to climb as the conflict in the Middle East and the Russia-Ukraine war keep energy costs and overall inflation elevated.

On Tuesday, the 10-year Treasury yield rose to its highest level in more than 19 years. Market concerns about government debt, along with recent data pointing to solid economic activity, are also pushing borrowing costs higher.

The Federal Reserve raised its benchmark rate earlier this month to curb inflation, its first hike since 2023. Investors expect the Fed to raise rates again before the end of the year.

Mark Fleming, chief economist at title insurer First American Financial Corp., said mortgage rates staying above 7% will keep more homeowners in their current homes, because the gap between the 3% or 4% low-rate mortgages they currently hold and prevailing rates is widening.

He said home sales could slow further, but that a sharp drop in home prices is unlikely as long as there is no large-scale economic recession that triggers forced sales such as foreclosures.

The MBA survey has been conducted weekly since 1990 and covers mortgage lenders, commercial banks and savings institutions, covering more than 75% of US retail residential mortgage applications.