U.S. Mortgage Rates Rise to 7.49% as Demand Weakens

U.S. mortgage rates have climbed further, adding pressure to housing demand and affordability. An earlier report put the average 30-year fixed rate at 7.01%, up from 6.95%, while the 15-year rate rose to 6.42%. A later MBA report said the 30-year rate had reached 7.49% in the week ended Oct. 2, its highest since November 2023 and about 1.4 percentage points above late-February levels. The rise in mortgage rates has tracked higher long-term Treasury yields. The earlier report cited a 10-year yield near 5.08%; the later report put it above 5.3%, linking the increase to persistent inflation concerns and oil prices above $100 a barrel. Treasury yields and mortgage-backed securities influence mortgage rates more directly than the Federal Reserve’s benchmark rate. Housing indicators point to weaker demand: the earlier report cited declines in mortgage applications and new-home applications, while the later MBA data showed total applications down 4.2% week over week, including a 2.1% drop in purchase applications and a 7.5% decline in refinancing. Rising borrowing costs are also discouraging homeowners with low-rate loans from selling. For crypto traders, the figures add to evidence of restrictive financial conditions, which may weigh on risk appetite, although the reports cite no direct cryptocurrency-market effects.