U.S. Mortgage Rates Climb to 7.40%, Seventh Straight Weekly Increase and Highest in Nearly Three Years
U.S. mortgage rates climbed again this week. According to Freddie Mac's Primary Mortgage Market Survey released on October 8, the 30-year fixed-rate mortgage averaged 7.40% for the week ending October 8, up from 7.28% the previous week. A year ago at this time, the 30-year rate averaged 6.30%. It was the seventh consecutive weekly increase and the highest reading since November 2023.
The 15-year fixed-rate mortgage averaged 6.73%, up from 6.60% last week; a year earlier it averaged 5.53%.
"As market conditions continue to evolve, borrowers should remember that shopping around for a mortgage rate and getting multiple quotes can potentially save them thousands over the loan's lifetime," said Sam Khater, Freddie Mac's chief economist.
This year's rate trajectory: the 30-year rate was hovering around 6.5% this summer, reached 6.71% in the first week of September, then rose to 6.95% and 7.03% over the next two weeks — September 24 marked the first reading above 7% in 2026 and the highest since January 2025. It climbed further to 7.28% on October 1 and 7.40% on October 8.
Higher rates directly raise the cost of buying. According to Consumer Affairs, a borrower taking out a $400,000 loan would pay about $294 more per month in principal and interest than at the average rate a year ago.
The market is already showing signs of cooling. According to Zillow's September Market Report released on October 6: newly pending sales fell 8.5% year over year in September, and closed sales fell 2.5%; home values rose just 1% over the past year; the typical mortgage payment is 6.7% higher than a year ago (assuming 20% down and excluding taxes and insurance); and total for-sale inventory was 2.5% higher than a year ago, marking the 34th consecutive month of annual gains. New listings remain weak, up just 0.4% from last September and still 11.9% below the pre-pandemic baseline.
Mortgage applications are shrinking as well. Citing Mortgage Bankers Association data (summarized by Mortgage Professional America), MBA deputy chief economist Joel Kan said higher rates are dampening both refinance and purchase activity: purchase applications fell 2% from the prior week and 15% from a year earlier, while refinance applications fell 56% year over year, with first-time and FHA borrowers feeling the pressure most.
Buyers and sellers are now in a standoff: buyers resist the cost of purchasing at high rates, while sellers resist price cuts. The National Association of Realtors will release its September existing-home sales report on October 13, which will provide fuller closing data.
(Sources: Freddie Mac, October 8 release; Zillow September Market Report; Mortgage Bankers Association)
Published by GSM · USA (original Chinese edition)
Photo: 加州 Van Nuys 住宅街景，公有领域（Wikimedia Commons，摄影：JGKlein）
