U.S. 30-Year Mortgage Rate Rises to 7.49%, Highest Since Late 2023

The average 30-year fixed-rate mortgage in the United States increased 19 basis points to 7.49% for the week ending Oct. 2, according to the Mortgage Bankers Association. The rate has not been this high since November 2023. Mortgage rates move closely with yields on 10-year Treasury notes, which this week reached a 24-year peak as investors responded to higher oil prices and data indicating stronger economic growth.

A Reuters/Ipsos poll released Monday showed that the cost of living is a primary concern for voters as they consider the Nov. 3 election, and it noted that President Donald Trump’s approval rating has fallen to 32%. Home-loan rates have risen about 1.4 percentage points since joint U.S.–Israeli strikes against Iran began in late February, mirroring a similar increase in the 10-year Treasury yield, which topped 5.3% on Monday.

Inflation for August was reported at 3.4% using the Federal Reserve’s preferred measure, above the central bank’s 2% target. Federal Reserve officials have indicated that another rate hike may follow the September increase, though markets currently expect no change at the upcoming policy meeting at the end of October.

Mortgage applications declined 4.2% from the previous week, with refinancing requests falling sharply, according to the MBA. Overall application volume is the lowest since February 2025 and has dropped 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.