30-Year Mortgage Rate Climbs to 7.24% as US Borrowing Costs Approach Highest Level Since Late 2023 Fall Housing Season Under Pressure
US mortgage rates climbed to their highest level in nearly three years in early October 2026, with the 30-year fixed rate reaching 7.24% for purchase loans and 7.40% for refinancing, according to data published October 1. Yahoo Finance
The 30-year average tracked by Mortgage News Daily reached 7.6%; the highest since November 2023, after rates surged approximately 70 basis points through September alone.
The spike is driven by a global bond selloff fuelled by rising oil prices, inflation concerns, and mounting government debt levels. The 10-year Treasury yield briefly touched its highest point since 2002 before retreating slightly. Freddie Mac reported a weekly average of 7.28% through Wednesday.
The timing is damaging for the housing market. Rates are suppressing buyer activity and refinancing demand during what is typically the busiest fall shopping season. Zillow senior economist Kara Ng described the bond market as continuing to “rain on the fall home shopping parade,” revising the firm’s year-end forecast to 7.1%. Mortgage Bankers Association President Bob Broeksmit warned that affordability pressures are weakening borrower demand across both purchase and refinance segments.
Read our previous article on Housing and Finance here.
