The average rate on the standard 30-year fixed-rate mortgage rose 19 basis points to 7.49% in the week ended October 2, marking the highest level since November 2023.
The sharp increase is driven by rising US Treasury yields, which crossed 5.3% to reach a 24-year high, alongside persistent inflation concerns and rising oil prices.
Higher borrowing costs have led to a 4.2% drop in mortgage loan applications and prompted potential homebuyers to pull back from the purchase market.