US Mortgage Rates Hit 7.30%, Nearly Three-Year High, Squeezing Homebuyers

The contract rate on a 30-year fixed mortgage rose 18 basis points in the week ended Sept. 25 to 7.30%, the highest since November 2023, the Mortgage Bankers Association reported Wednesday. It was the sixth straight weekly increase. The five-year adjustable rate jumped 37 basis points to 6.47%, a more than two-year high. Higher financing costs are deepening the housing slowdown. The MBA purchase index fell 4.3% to its lowest since April 2025, while the refinance gauge dropped 8.7%, extending a slide begun in mid-August. Rates track 10-year Treasury yields, which reached a more than 19-year high on Tuesday, lifted by Middle East conflict, the Russia-Ukraine war, debt concerns and solid economic data. The Federal Reserve raised its benchmark rate earlier this month for the first time since 2023, and investors expect another hike by year-end. First American Financial Corp. chief economist Mark Fleming said rates above 7% will keep homeowners with 3% or 4% mortgages locked in place, adding that prices are "downside sticky."