News Mortgage News Borrowers Put Off by Rising Mortgage Rates Off the Charts: The Visual Says It All By Diccon Hyatt Diccon Hyatt Diccon Hyatt has written hundreds of articles about how public policy and the economy intersect with personal finance, tracking all the latest dynamics affecting your money. Before joining The Balance, he covered business and community news for 17 years, including Princeton, New Jersey's high-tech Route 1 Corridor. learn about our editorial policies Updated on July 6, 2021 Share Tweet Pin Email Photo: Witthaya Prasongsin / Getty Images As one goes up, the other goes down. That’s the clear pattern that’s emerged as mortgage interest rates have climbed back up from this winter’s record lows and measures of mortgage and refinancing demand have dropped, data from the Mortgage Bankers Association (MBA) shows in the chart below. Rock-bottom interest rates helped fuel a residential real estate boom during the pandemic, but the average rate for a 30-year, fixed mortgage has risen 11 out of the 13 weeks logged this year, last week reaching 3.36%—the highest rate since June (except for two weeks earlier, when it was also 3.36%.). In December, the average touched a record low of 2.85%. Meanwhile, the MBA’s Market Composite Index, which measures the volume of applications for both purchases and refinances, has fallen 29% since its recent high on Jan. 29. To be sure, there are other factors holding down purchases, including sky-high prices and a threadbare supply of homes for sale, but the increased borrowing costs, while still quite low relatively speaking, are becoming harder to ignore. Was this page helpful? Thanks for your feedback! Tell us why! Other Submit Sources The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy. Mortgage Bankers Association. "Mortgage Applications Decrease in Latest MBA Weekly Survey."