Archive · 9 Oct 2026
US Mortgage Rates Hit Nearly Three-Year High at 7.49%
The average interest rate on a common 30-year US home loan rose to 7.49%.
That is the highest level since November 2023, according to the Mortgage Bankers Association.
Mortgage rates have risen as government bond yields, inflation concerns and oil prices have increased.
Inflation in August was higher than the Federal Reserve’s goal.
With higher rates, people who borrow to buy a home have to pay more each month.
Fewer people applied for mortgages, and refinancing became less appealing to many homeowners.
Some people are delaying a home purchase, while owners with very low rates may avoid moving.
What happens next depends partly on inflation, energy prices, bond yields and Federal Reserve policy.
The Mortgage Bankers Association said the average 30-year fixed mortgage rate rose 19 basis points to 7.49% in the week ended October 2, its highest level since November 2023.
The articles link rising mortgage costs to higher 10-year Treasury yields, persistent inflation, oil-price increases tied to the Iran conflict, and concerns about government borrowing.
US inflation was 3.4% in August, above the Federal Reserve’s 2% target; the 10-year Treasury yield rose above 5.3% and reached a 24-year high.
Mortgage applications fell 4.2% in the latest reported week, while total application volumes were at their lowest since February 2025 and nearly 50% below January.
Higher payments are squeezing affordability, discouraging purchases and refinancing, and contributing to a lock-in effect for homeowners with low-rate mortgages.
- Who
- US homebuyers, homeowners seeking to refinance, and mortgage lenders.
- What
- The MBA-reported average 30-year fixed mortgage rate rose to 7.49%, increasing borrowing costs and affordability pressures.
- When
- The rate was reported for the week ended October 2; it was last higher in November 2023.
- Where
- United States.
- Why
- Higher Treasury yields amid inflation concerns, rising oil prices and expectations about Federal Reserve policy have pushed borrowing costs upward.
Federal Reserve and inflation outlook
Market pricing and rate relief
Whether another Fed rate increase is likely soon
Federal Reserve and inflation outlook
Fed policymakers have signalled that they expect another interest-rate increase before the end of the year, and Governor Christopher Waller called for further increases to bring inflation down.
Market pricing and rate relief
Financial markets were pricing in no increase at the Fed’s policy meeting later this month; mortgage rates may ease if inflation slows and investors expect the Fed to hold or lower rates.
What could ease mortgage rates
Federal Reserve and inflation outlook
Continued inflation, higher oil prices and government borrowing could keep Treasury yields and mortgage rates elevated.
Market pricing and rate relief
Treasury Secretary Scott Bessent said rates could come down once the Iran-related energy shock eases; lower oil prices and sustained declines in inflation could also reduce pressure.
- MBA 30-year mortgage rate
- 7.49% for the week ended October 2, up 19 basis points from the previous week.
- Previous high
- The rate was last higher in November 2023.
- Inflation
- US inflation was 3.4% in August, compared with the Federal Reserve’s 2% target.
- 10-year Treasury yield
- Rose above 5.3% and reached its highest level in 24 years, according to the articles.
- Mortgage applications
- Overall applications fell 4.2% in the latest reported week; refinancing applications also declined sharply.
- Application volumes
- At their lowest since February 2025 and nearly 50% below January.
- Rate increase since late February
- US home borrowing costs rose about 1.4 percentage points since joint US-Israeli strikes against Iran began.
- Freddie Mac rate report
- One article separately reports a Freddie Mac average of 7.40% for the week ending October 8, 2026, up from 7.28% a week earlier.
