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U.S. mortgage rates hit nearly three-year high of 7.49%
U.S. mortgage rates have surged to their highest levels in nearly three years, with the average 30-year fixed-rate mortgage reaching 7.49% for the week ending October 2, 2026. This increase, driven by rising 10-year Treasury yields which hit a 24-year high, has significantly impacted housing affordability and market activity.
According to the Mortgage Bankers Association (MBA), total mortgage applications fell 4.2% compared to the previous week. Purchase applications saw a 2% decline, while refinancing applications plunged by 8%, falling to less than half of the volume seen a year ago. Joel Kan, MBA Deputy Chief Economist, noted that high borrowing costs have caused many potential buyers to retreat from the market and provided little incentive for current homeowners to refinance.
Despite the pressure on demand, Fannie Mae’s national Home Price Index reported a 3.4% year-over-year increase in single-family home prices for the third quarter of 2026. This indicates a market tension where high financing costs are weakening demand without causing a broad national decline in home values.
Entities
Donald Trump · Fannie Mae · Federal Reserve · Freddie Mac · Joel Kan · Mortgage Bankers Association · Mortgage News Daily · Scott Bessent · United States · United States Treasury
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 8 SOURCES] Mortgage applications fell 4.2% last week compared to the previous week. www.businesstimes.com.sg · www.borsaningundemi.com · hn24.hnonline.sk · www.aljazeera.com · www.emlakhaberi.com · +3 more
- [● 3 SOURCES] Rising energy costs and inflation are contributing to higher bond yields. www.ekoturk.com · www.businesstimes.com.sg · www.aljazeera.com
- [● 2 SOURCES] The 30-year fixed-rate mortgage was 7.28% at the end of September 2026. que.com · www.businessreport.com
- [● 9 SOURCES] Mortgage rates are closely tied to the yield on 10-year Treasury notes. www.ekoturk.com · que.com · www.businesstimes.com.sg · www.nerdwallet.com · www.aljazeera.com · +4 more
- [○ 1 SOURCE] Daily mortgage rates briefly touched 7.6% on September 30. que.com
- [● 8 SOURCES] The 10-year Treasury yield reached its highest levels in over 24 years. www.ekoturk.com · que.com · www.businesstimes.com.sg · www.aljazeera.com · paratic.com · +3 more
- [● 7 SOURCES] Refinancing applications dropped sharply. www.businesstimes.com.sg · www.borsaningundemi.com · www.aljazeera.com · www.emlakhaberi.com · hn24.hnonline.sk · +2 more
- [● 13 SOURCES] The average 30-year fixed-rate mortgage rose to 7.49% for the week ending October 2, 2026. www.ekoturk.com · www.businesstimes.com.sg · www.borsaningundemi.com · hn24.hnonline.sk · www.aljazeera.com · +8 more
- [○ 1 SOURCE] Fannie Mae’s national Home Price Index rose 3.4% year over year in the third quarter. wrenews.com