US 30-year mortgage rate hits highest in nearly three years
TLT•The average US 30-year fixed mortgage rate rose 19 basis points to 7.49% in the week ended October 2, its highest since November 2023. Mortgage applications fell 4.2% from the previous week, with total application volumes at their lowest since February 2025.
1. Rates rise, applications fall
The average 30-year fixed-rate mortgage climbed to 7.49% in the week ended October 2, the Mortgage Bankers Association said. Rates have risen about 1.4 percentage points since joint US-Israeli strikes against Iran began in late February, tracking a similar increase in the 10-year Treasury yield, which topped 5.3% on Monday.
2. Borrowers pull back
Mortgage loan applications fell 4.2% from the previous week, with refinancing applications dropping sharply. Overall application volumes were the lowest since February 2025 and had fallen nearly 50% since January. MBA Deputy Chief Economist Joel Kan said the jump in borrowing costs had caused many potential borrowers to step back from the purchase market.
