US Mortgage Rates Reach Nearly Three-Year High
The average 30-year fixed mortgage rate rose to 7.28% as of October 1, 2026, marking its sixth consecutive weekly increase and the highest level since November 22, 2023, according to Freddie Mac. Some sources reported rates reaching as high as 7.6%, with the Mortgage Bankers Association reporting a rate of 7.49% for the week ending October 2nd.
Rate Increases and Historical Context
The current average is up from 7.03% last week, representing the largest weekly increase since October 2022. A year ago, the average rate was 6.34%. The 15-year fixed-rate mortgage also saw an increase, climbing to 6.60% from 6.42%, compared to 5.55% a year prior.
Factors Contributing to Rising Rates
Rising U.S. Treasury yields are contributing to the surge in mortgage rates. The yield on the 10-year Treasury reached as high as 5.34%, with its largest quarterly increase since 1994. Inflation, driven by rising energy prices linked to conflicts in Iran and Ukraine, is also a major factor. Gas prices are currently 47% higher than they were in late February when the conflict began, while diesel costs have increased by 70%.
Impact on Housing Market
The increase in mortgage rates appears to be impacting the housing market. Pending home sales have fallen below year-ago levels, and a growing percentage of listings are seeing price cuts – 20.8% in September, the highest share in four years. Inventory is also narrowing, being only 9.1% below pre-pandemic levels.
💬 Comments (0)