US Mortgage Rates Fall for 1st Time in 11 Weeks

The average 30-year fixed mortgage rate fell by 9 basis points to 7.41% in the week ended October 16, 2026, according to the Mortgage Bankers Association. This marked the first decline in borrowing costs in 11 weeks, following eight consecutive weeks of increases, as Treasury yields fell amid a flight to safety and growing expectations that the Federal Reserve would leave interest rates unchanged this month. Meanwhile, total mortgage applications dropped 5.3%, extending their decline to a seventh consecutive week. Refinancing applications fell by 2%, while applications for home purchases tumbled 7.3%.

The average 30-year fixed mortgage rate edged up 1 basis points to 7.5% in the week ended October 9, 2026, according to the Mortgage Bankers Association. It marked an eighth straight weekly increase, bringing the cumulative rise to 141 basis points since US-Israeli strikes against Iran began in late February. Borrowing costs continue to track elevated US Treasury yields amid expectations that the Federal Reserve will need to keep interest rates higher for longer to bring inflation under control. This upward movement has weighed heavily on the housing sector. Total mortgage applications fell 2.7%, extending their decline to a sixth consecutive week. Refinancing applications dropped 0.4%, while purchase applications fell 4%.

The average 30-year fixed mortgage rate jumped another 19 basis points to 7.49% in the week ended October 2, following an 18-basis-point increase the previous week and reaching its highest level since late November 2023, according to the Mortgage Bankers Association. It marked a seventh straight weekly increase, bringing the cumulative rise to 140 basis points since US-Israeli strikes against Iran began in late February. The latest increase followed another rise in Treasury yields, with both 10-year and 30-year rates reaching their highest levels since 2002 amid persistent energy-driven inflation and expectations for at least one more Fed hike this year, followed by further tightening in 2027. Total mortgage applications fell 4.2%, extending their decline to a fifth consecutive week. Refinancing applications dropped 7.5%, while purchase applications fell 2.1%.