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US 30-year mortgage rate hits highest in nearly three years
Reuters • • general
Key Points:
- The average 30-year fixed-rate mortgage in the US rose to 7.49% in the week ending October 2, reaching its highest level since November 2023, according to the Mortgage Bankers Association.
- Mortgage rates have surged due to a 24-year high in the yield on US 10-year Treasury notes, driven by inflation concerns from rising oil prices and strong economic growth data.
- Rising borrowing costs and inflation, which hit 3.4% in August, are worsening housing affordability and contributing to a decline in mortgage applications, which are at their lowest since February 2025.
- The Federal Reserve is expected to raise interest rates again before the end of the year, despite market expectations that no hike will occur at the October policy meeting.
- The increase in mortgage rates and overall cost of living are key factors influencing voter sentiment ahead of the November 3 elections, with President Trump's approval rating at a record low of 32%.
