The contract rate on a 30-year fixed mortgage climbed 19 basis points to 7.49 percent for the week ended Oct. 2, marking the seventh consecutive week of increases and the highest level since November 2023, according to data released Wednesday by the Mortgage Bankers Association.
The advance represents a 50 basis point jump over three weeks—the fastest pace since early 2023. Rising energy costs and broader inflation have pushed 10-year Treasury yields to their highest level since 2002, directly lifting mortgage rates as lenders price in elevated long-term borrowing costs.
The MBA purchase index, which tracks loan applications for home purchases, declined 2.1 percent to its lowest level in more than a year. The refinance gauge fell 7.5 percent, extending a decline that began in mid-August.
High mortgage rates combined with elevated home prices have stalled previously owned home sales and new-home construction. The dual headwind—duration risk compressing refinance volume while rate-sensitive purchase demand evaporates—signals mortgage origination pipelines are contracting sharply.
