US mortgage rates hold at highest level in nearly three years

Summarised from 2 outlets · Updated 15 Oct, 19:32 · Archive

The average 30-year fixed-rate mortgage in the US remained at 7.40%, its highest level since November 2023.

The average 30-year fixed-rate mortgage in the United States remained unchanged at 7.40% this week, according to mortgage buyer Freddie Mac. This is the highest level since 16 November 2023, when it was 7.44%. One year ago, the average rate was 6.27%.

The 15-year fixed-rate mortgage, typically used by borrowers refinancing a home loan, dropped to 6.71% from 6.73% the previous week. A year ago it stood at 5.52%. The latest reading ends a seven-week climb in mortgage rates.

Rates on home loans are influenced by inflation, Federal Reserve policy and bond-market investors' expectations for the economy. They generally follow the trajectory of the 10-year Treasury yield, which lenders use to price home loans. Mortgage rates have been climbing since late February, driven by higher oil prices and inflation concerns. Bond market volatility has also pushed up Treasury yields, which had topped 5.30% earlier this month.

Rising mortgage rates, which can add hundreds of dollars a month in costs for borrowers, have contributed to stalled US home sales this year by limiting purchasing power and prompting buyers to delay purchases.

How it is being reported

• Average long-term US mortgage rate holds at 7.4%, remaining at highest level in nearly 3 yearsMortgage rates held steady this week, keeping the average long-term U.S. home loan rate at its highest level in nearly three years.Clickorlando · 15 Oct, 17:01
• Average long-term US mortgage rate holds at 7.4%, remaining at highest level in nearly 3 yearsMortgage rates held steady this week, keeping the average long-term U.S. home loan rate at its highest level in nearly three years.News4Jax · 15 Oct, 17:01

In this story: Freddie Mac · United States

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