US mortgage rates climbed for a seventh straight week to their highest level in nearly three years, compounding the nation’s affordability problem.
The contract rate on a 30-year fixed mortgage rose 19 basis points to 7.49% in the week ended Oct. 2, its highest point since November 2023, according to Mortgage Bankers Association figures released Wednesday. It’s up about half a percentage point over the past three weeks, marking the fastest increase since early 2023.
Energy costs and overall inflation have climbed since the start of the Iran war, driving up yields for 10-year Treasury notes, which heavily influence mortgage rates and on Monday reached the highest level since 2002. Along with still-elevated prices, mortgage rates have prevented sales of previously owned homes and new-home sales from sustaining any momentum.
The MBA purchase index, which measures loan applications, declined 2.1%, slipping to the lowest level in more than a year. MBA’s refinance gauge fell 7.5%, continuing a slide that started in mid-August.
Explainer: Why Mortgage Rates Continue to Climb Higher
The MBA survey, which has been conducted weekly since 1990, uses responses from mortgage bankers, commercial banks and thrifts. The data cover more than 75% of all retail residential mortgage applications in the US.