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Updated Version 2 - US 30-Year Mortgage Rate Hits Nearly Three-Year High

Updated Version 2 - US 30-Year Mortgage Rate Hits Nearly Three-Year High

路透社路透社2026/10/07 19:26
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Additional remarks by Trump were included in paragraphs 8 and 9. The Mortgage Bankers Association (MBA) stated that the average 30-year fixed-rate mortgage in the US jumped by 19 basis points to 7.49%. The Federal Reserve signaled that it may raise interest rates one more time this year, though markets expect no action in October. Overall mortgage application volume fell by 4.2% week-on-week, reaching its lowest level since February 2025. According to Ann Saphir at Reuters on October 7, last week, the most common US home loan interest rate surged to its highest level in nearly three years. This further increased the burden on homebuyers, just four weeks before the election that will determine whether the Republican Party under President Donald Trump will maintain control of Congress. The MBA reported on Wednesday that during the week ending October 2, the average 30-year fixed mortgage rate jumped 19 basis points to 7.49%, the highest level since November 2023. Mortgage rates are closely correlated with US 10-year Treasury yields. Earlier this week, those yields hit a 24-year high, driven by concerns about inflation due to soaring oil prices and data showing strong US economic growth. A Reuters/Ipsos poll completed Monday found that the cost of living is the top issue for Americans when deciding how to vote on November 3. This is one reason Trump’s approval rating has dropped to an all-time low of 32%. Since the US-Israel coalition’s airstrikes against Iran in late February, home loan rates have risen by about 1.4 percentage points, a move echoing the similar increase in the 10-year Treasury yield, which surpassed 5.3% on Monday. Inflation is also climbing; using the Fed’s 2% target as a benchmark, inflation reached 3.4% in August. Federal Reserve policymakers have indicated that, after raising rates in September, they expect to hike again by year-end, although markets currently expect no action at the policy meeting in late October. When asked about mortgage rates on Wednesday, Trump said Fed Chair Kevin Warsh was “great”, but added that other members “seem to want the economy to underperform, because I think rates should be going down”. US Treasury Secretary Scott Bessent, present in the Oval Office with Trump at the time, blamed inflation and high mortgage rates on temporary shocks caused by rising oil prices. “So, once we get through this Iran conflict and the energy market is well supplied, we will move towards the Fed’s targets, and both mortgage rates and the 10-year Treasury yield will come down,” Bessent said. The MBA reported Wednesday that overall mortgage applications last week dropped 4.2% from the previous week, with refinancing applications falling sharply. Total application volume is now at its lowest since February 2025 and has declined nearly 50% since January. “At current rate levels, there is almost no incentive for homeowners to refinance, and the surge in borrowing costs has caused many potential borrowers to exit the homebuying market,” said MBA Deputy Chief Economist Joel Kan. (For convenience to non-native English speakers, Reuters automatically translates its reports into several other languages. Due to possible errors in automated translation or failure to capture necessary context, Reuters does not guarantee the accuracy of these translations, which are provided solely for reader convenience. Reuters assumes no liability for any damages or losses arising from the use of automated translation features.)

Added Trump’s comments in paragraphs 8–9

The Mortgage Bankers Association (MBA) reported that the average 30-year fixed mortgage rate jumped 19 basis points to 7.49%

The Federal Reserve signaled it will raise rates once more this year, but the market expects no action in October

Overall mortgage application volume fell 4.2% from the previous week, hitting the lowest level since February 2025

Ann Saphir

- Last week, the most common U.S. home loan rate soared to its highest in nearly three years, further increasing the burden for homebuyers just four weeks before the election that will determine whether Republican President Donald Trump (link) and his party can keep control of Congress (link).

The Mortgage Bankers Association said on Wednesday that for the week ending October 2, the average contract rate on a 30-year fixed-rate mortgage jumped 19 basis points to 7.49%. The last time rates were this high was November 2023.

Mortgage rates are closely tied to the yield on the U.S. 10-year Treasury note. That yield hit a 24-year high earlier this week (link), driven by concerns about inflation due to a spike in oil prices and data showing robust U.S. economic growth.

A Reuters/Ipsos poll completed on Monday found that the cost of living is Americans’ top concern as they decide how to vote on November 3, one reason Trump’s approval rating (link) has fallen to a record low of 32%.



Since late February, when U.S.-Israeli forces launched strikes against Iran (link), mortgage rates have risen by about 1.4 percentage points, mirroring a similar increase in the 10-year Treasury yield—which topped 5.3% on Monday.

Inflation is also climbing, reaching 3.4% in August when measured against the Federal Reserve’s 2% target.

Federal Reserve policymakers have signaled they expect to raise rates once more by year’s end after the September hike, though the market currently widely expects the Fed will not act at the late-October policy meeting.

On Wednesday, when asked by reporters about mortgage rates, Trump said Federal Reserve Chairman Kevin Warsh was “great,” but added that other members “seem, to me, to want the economy to do poorly, because I think interest rates should be lower.”

U.S. Treasury Secretary Scott Bessent, who was with Trump in the Oval Office at the time, blamed inflation and high mortgage rates on temporary shocks from surging oil prices. “So once we get through this Iran conflict, and the energy market is well supplied, we’ll move toward the Fed’s target—mortgage rates and the 10-year Treasury yield will come down,” Bessent said.

The Mortgage Bankers Association (MBA) said Wednesday that mortgage applications dropped 4.2% from the previous week, with refinancing applications plunging. Total application volume is at its lowest since February 2025, down nearly 50% since January.

“At current rates, almost no homeowners are motivated to refinance, and the spike in borrowing costs has pushed many potential borrowers out of the purchase market,” said Joel Kan, MBA’s deputy chief economist.


(To accommodate non-English speakers, Reuters automatically translates its reports into several other languages. Because automated translation may be inaccurate or lack necessary context, Reuters does not guarantee the accuracy of translated texts, which are provided solely for reader convenience. Reuters accepts no liability for any damage or loss caused by use of automated translation.)

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