FX.co ★ US 30-Year Mortgage Rates Hit 7.49%

The average 30-year fixed mortgage rate climbed another 19 basis points to 7.49% in the week ended October 2, after an 18-basis-point increase the prior week, reaching its highest level since late November 2023, according to the Mortgage Bankers Association. This was the seventh consecutive weekly increase, bringing the total rise to 140 basis points since US-Israeli strikes against Iran began in late February. The latest move tracked another uptick in Treasury yields, with both the 10-year and 30-year benchmarks hitting their highest levels since 2002, driven by persistent energy-related inflation and expectations of at least one additional Fed rate hike this year, followed by further tightening in 2027. Total mortgage applications fell 4.2%, marking a fifth straight weekly decline. Refinancing applications dropped 7.5%, while purchase applications slipped 2.1%.