US Mortgage Rates Hit 3-Year High at 7.49% Amid Rising Treasury Yields

▲ Surge in US Mortgage Rates

Driven by rising US Treasury yields, the average interest rate on a 30-year fixed mortgage has jumped to a three-year high, Reuters reported on the 7th local time.

The Mortgage Bankers Association (MBA) stated that the average rate for a 30-year fixed mortgage for the week ending October 2 rose 0.19 percentage points from the previous week to 7.49%.

This marks the highest level since November 2023.

According to a survey by government-sponsored mortgage enterprise Freddie Mac, the 30-year fixed rate stood at 7.28% as of October 1, the highest level since October 2023.

This is nearly 1 percentage point higher than a year ago (6.34%).

Mortgage rates are closely tied to the yield on the 10-year US Treasury note.

Driven by inflation concerns from soaring oil prices and robust economic indicators, the 10-year Treasury yield surged to as high as 5.366% during trading on the 7th to set a new year-to-date high before closing at 5.286%.

With the cost of living emerging as a major issue ahead of next month's midterm elections, US home loan demand is contracting, further deteriorating purchasing power.

Mortgage applications dropped 4.2% from the previous week, reaching their lowest level since February 2025.

In particular, refinancing applications saw a sharp decline.

Joel Kan, MBA vice president and deputy chief economist, said, "At these rate levels, very few homeowners have any incentive to refinance," adding that "the surge in borrowing costs has priced many potential buyers out of the housing market."

When asked by a reporter about mortgage rates that day, President Donald Trump said, "I think the [Federal Reserve] board wants the country to fail. Our interest rates should be the lowest."

Treasury Secretary Scott Bessent, who was present, blamed the high interest rates on a temporary shock from rising oil prices, stating, "Once we get past the Iran conflict, energy supplies will be sufficient, and mortgage rates and 10-year yields will come back down."

(Photo: Getty Images)

※