U.S. 30-Year Mortgage Rate Climbs to 7.49%, Highest Since Late 2023
The average rate on a 30-year fixed mortgage rose to 7.49% for the week ending Oct. 2, the highest level in nearly three years, prompting a drop in loan applications.
The Mortgage Bankers Association reported that the average 30-year fixed-rate mortgage increased 19 basis points to 7.49% in the week ending Oct. 2, the highest level since November 2023. The rise mirrors a jump in the yield on U.S. 10-year Treasury notes, which reached a 24-year peak earlier in the week amid concerns about inflationary pressure from higher oil prices and stronger economic data.
Mortgage loan applications fell 4.2% from the previous week, with refinancing requests dropping sharply, according to the MBA. Overall application volume is the lowest since February 2025 and down nearly 50% since January.
"Very few homeowners have an incentive to refinance at these rates, and the jump in borrowing costs has caused many potential borrowers to step back from the purchase market," said Joel Kan, the MBA's deputy chief economist.
The higher rates come as the cost of living remains a top issue for voters ahead of the November 3 elections, and Federal Reserve officials have indicated another rate hike could follow the September increase before year-end.