The average rate on a 30-year fixed mortgage climbed 19 basis points to 7.49 percent in the week ending October 2, the highest in nearly three years, the Mortgage Bankers Association reported Wednesday. Mortgage applications tumbled 4.2 percent on the week to their lowest since February 2025 and have fallen by almost half since the start of the year.
MBA deputy chief economist Joel Kan said very few homeowners have any incentive to refinance at these levels, and the jump in costs has pushed potential buyers out of the purchase market. The 10-year Treasury, which anchors mortgage pricing, touched a 24-year high of 5.3 percent earlier this week on surging oil prices tied to Iran tensions, and mortgage rates have risen 1.4 percentage points since the U.S. and Israel first struck Iran in late February.