US 30-year mortgage rate rises to 7.49%, highest in nearly three years

In short

The average contract rate on a 30-year fixed mortgage rose to 7.49% last week from 7.30%, the highest level in nearly three years, according to the Mortgage Bankers Association. Total mortgage application volume fell 4.2% week over week, with refinance applications down 8% and purchase applications down 2%, the MBA said. Bloomberg reported the rate rose 19 basis points in the week ended Oct. 2, its highest since November 2023.

Why it matters

Higher mortgage rates raise borrowing costs for US homebuyers and shrink the pool of homeowners who can benefit from refinancing, which the MBA ties to affordability challenges. Bloomberg framed the rate level as a potential political problem for Republicans ahead of the midterm elections. The documents do not give forecasts for where rates go next.

Key facts

• The average contract interest rate on a 30-year fixed-rate conforming mortgage rose to 7.49% last week from 7.30%, the Mortgage Bankers Association said. [ 1 ]
• CNBC and Reuters both described the rate as the highest in nearly three years; Bloomberg said it was the highest since November 2023. [ 1 , 2 , 3 ]
• Total mortgage application volume dropped 4.2% from the previous week, according to the MBA's seasonally adjusted index. [ 1 ]
• Refinance applications fell 8% for the week and were 56% lower than the same week a year earlier, the lowest level since 2025, the MBA said. [ 1 ]
• Purchase mortgage applications declined 2% for the week and were 15% lower than a year earlier, with FHA purchase applications down 6%. [ 1 ]
• Points rose to 0.84 from 0.75, including the origination fee, for loans with a 20% down payment; the conforming loan limit cited was $832,750 or less. [ 1 ]
• The share of borrowers choosing adjustable-rate mortgages was steady at 10.3%, according to the MBA. [ 1 ]
• Bloomberg said the rate level could pose a problem for Republicans heading into the midterm elections. [ 3 ]

What local media are saying

Timeline, local time

1. 07:00CNBC publishes the Mortgage Bankers Association weekly data, reporting the 30-year rate at 7.49% and a 4.2% drop in application volume. [ 1 ]
2. 07:15Reuters reports the US 30-year mortgage rate hit its highest in nearly three years. [ 2 ]
3. 09:30Bloomberg reports the contract rate rose 19 basis points in the week ended Oct. 2, its highest since November 2023, and discusses the midterm election implications. [ 3 ]