Overview
- The Freddie Mac weekly survey recorded the average 30-year fixed rate at 7.03% on Sept. 24, the first weekly reading above 7% since Jan. 16, 2025.
- Markets pushed the move as the 10-year Treasury yield climbed toward roughly 5.1% after higher oil prices and stronger economic data increased inflation worries.
- The Federal Reserve’s Sept. 16 quarter-point rate increase and its signals of possible further tightening added pressure on long-term yields and mortgage pricing.
- Mortgage applications and refinance activity have fallen while demand for adjustable-rate mortgages rose to about 9–10% as borrowers seek lower initial payments.
- Higher rates are costing typical buyers hundreds more per month and are likely to cool home sales and construction, while many current homeowners stay off the market because they hold much lower locked-in rates.