US Mortgage Rate Climbs to 7.16%, Matching Highest Since 2001

(Bloomberg) -- The US 30-year mortgage rate rose to 7.16% last week, matching the highest since 2001 and crimping both sales and refinancing activity. Most Read from BloombergThe contract rate on a 30-year fixed mortgage rose 7 basis points to 7.16% in the week ended Aug. 11, according to Mortgage Bankers Association data out Wednesday. The impact from high mortgage rates is two-fold: it restrains demand and keeps many Americans who are sitting on lower mortgage rates from listing their homes. While lean inventory has generally encouraged more home construction, higher mortgage rates may mean builders have to offer more incentives to lure prospective buyers. The data cover more than 75% of all retail residential mortgage applications in the US.