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

Summarised from 2 outlets · Updated 8 Oct, 17:55 · Archive

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

The benchmark 30-year fixed-rate mortgage climbed to 7.40% from 7.28% the previous week, according to mortgage buyer Freddie Mac. One year ago, the average rate was 6.30%, and the current rate is now the highest it has been since November 16, 2023, when it reached 7.44%. The 15-year fixed-rate mortgage, often used by borrowers refinancing a home loan, also rose this week to 6.73% from 6.60%.

Mortgage rates have been climbing since the start of the US war with Iran in late February. The recent run-up reflects heightened bond market volatility as surging oil prices fuel inflation worries. Home loan rates are influenced by inflation, Federal Reserve policy and bond-market investors' expectations for the economy, and generally follow the 10-year Treasury yield, which lenders use to price mortgages. The 10-year Treasury yield has risen to its highest level since 2002, reaching 5.29% on Thursday, well above its 3.97% level from before the Iran war began.

The housing market has been constrained this year largely because rising mortgage rates add hundreds of dollars monthly to borrowing costs, limiting homebuyers' purchasing power and prompting many to postpone purchases.

How it is being reported

• Average long-term US 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.Clickorlando · 8 Oct, 17:01
• Average long-term US 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.News4Jax · 8 Oct, 17:01

In this story: Freddie Mac · Iran · United States

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem