US mortgage rates hit nearly three-year high after seventh weekly rise

Summarised from 2 outlets · Updated 8 Oct, 19:24 · Archive

The average US 30-year fixed-rate mortgage climbed to 7.40%, its highest level in nearly three years.

The average 30-year fixed-rate mortgage in the United States climbed to 7.40% from 7.28% the previous week, according to mortgage buyer Freddie Mac. This marks the seventh consecutive weekly increase and is the highest level since 16 November 2023. The 15-year fixed-rate mortgage average rose to 6.73% from 6.60% the week before.

One year ago, the 30-year rate stood at 6.30%, while the 15-year rate was at 5.53%. Rising mortgage rates have significantly strained the US housing market, adding hundreds of dollars to monthly borrowing costs for homebuyers and reducing purchasing power. Many potential buyers have delayed purchasing decisions as a result.

Mortgage rates are influenced by inflation, Federal Reserve policy and bond-market investor expectations for the economy. They generally track the 10-year Treasury yield, which lenders use to price home loans. The 10-year Treasury yield reached 5.29% on the day Freddie Mac released its figures, well above its 3.97% level before late February. The yield has risen to its highest level since 2002 amid concerns about inflation, government debt and other economic factors.

How it is being reported

• Average long-term U.S. mortgage rate at highest level in nearly 3 years after 7th weekly rise in a rowMortgage rates marched higher for the seventh week in a row, driving the average long-term U.S. home loan rate to its highest level in nearly three years.TribLIVE · 8 Oct, 17:37
• Average long-term U.S. mortgage rate at highest level in nearly 3 years after 7th weekly rise in a rowPittsburgh Post-Gazette · 8 Oct, 17:24

In this story: United States · Freddie Mac

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