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US 30-Year Mortgage Rate Hits Highest Level in Nearly Three Years Amid Rising Treasury Yields
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Firstpost•08-10-2026, 10:52
US 30-Year Mortgage Rate Hits Highest Level in Nearly Three Years Amid Rising Treasury Yields
- •The average rate on a 30-year fixed-rate mortgage rose 19 basis points to 7.49 per cent in the week ended October 2, reaching its highest mark since November 2023.
- •Mortgage rates are closely tracking the 10-year US Treasury yield, which surged to its highest level in 24 years due to inflation concerns and higher oil prices.
- •Overall US mortgage applications dropped 4.2 per cent last week, with refinancing and purchase volumes continuing to decline sharply.
- •Higher borrowing costs and elevated property prices are significantly straining housing affordability and discouraging prospective homebuyers.
Key Questions Answered
The average rate on a 30-year fixed-rate mortgage rose by 19 basis points to 7.49 per cent in the week ended October 2, reaching its highest level since November 2023.
Mortgage rates are rising due to a combination of inflation concerns, higher oil prices linked to the Iran conflict, and expectations regarding Federal Reserve policy, which have pushed 10-year US Treasury yields to a 24-year high.
Overall US mortgage applications fell 4.2 per cent with refinancing applications declining sharply, bringing application volumes to their lowest level since February 2025 and down nearly 50 per cent since January.
