The 30-year mortgage rates are at an average of 7.23% this week, the highest level in over two decades, up from 7.09% last week

Rates for the most popular type of U.S. home loan have reached their highest level since 2001, as reported in Freddie Mac's weekly mortgage market survey.

Specifically, the average 30-year mortgage rate climbed to 7.23% this week, marking the highest level in more than two decades. This increase from last week's rate of 7.09% is significant, as it was the first time in 2023 that the rate surpassed 7%. In a related development, the Mortgage Brokers Association noted that the surge in borrowing costs led to mortgage applications dropping to their lowest point in 28 years during the same period.

This trend is linked to the rise in the yield of the 10-year Treasury note, which serves as a benchmark for mortgage rates. The increase in the yield has been influenced by robust economic data that has raised concerns that the Federal Reserve's campaign of raising interest rates is not yet complete.

It's worth noting that while high borrowing costs led to a significant decline in home sales the previous year, the current scarcity of housing inventory poses a threat to a potential recovery in the housing market.