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US Mortgage Rates Surge to 7.49 Percent, Reaching Highest Level Since November 2023
M
Moneycontrol•07-10-2026, 16:52
US Mortgage Rates Surge to 7.49 Percent, Reaching Highest Level Since November 2023
- •US mortgage rates climbed for the seventh consecutive week, rising to 7.49 percent for a 30-year fixed mortgage.
- •The sharp increase is driven by rising energy costs, overall inflation, and surging yields for 10-year Treasury notes.
- •High borrowing costs and elevated home prices continue to suppress both new and previously owned home sales.
- •Loan applications for home purchases dropped 2.1 percent to their lowest level in over a year.
- •The MBA refinance gauge fell 7.5 percent, extending a downward trend that began in mid-August.
Key Questions Answered
The contract rate on a 30-year fixed mortgage rose 19 basis points to 7.49% for the week ending October 2, reaching its highest level since November 2023.
Energy costs and overall inflation have climbed since the start of the Iran war, driving up yields for 10-year Treasury notes that heavily influence mortgage rates.
The Mortgage Bankers Association purchase index declined by 2.1% to reach its lowest level in over a year, while the refinance gauge dropped by 7.5%.
