US 30-year mortgage rate climbs to 7.3%, highest since November 2023
Mortgage applications fell 6.0% in the week ended September 25, a steeper drop than the prior week's 1.5% decline
Published
The average rate on a 30-year fixed mortgage rose to 7.3%, the highest level since November 2023.
The 10-year Treasury yield sits above 5.2%. Traders have trimmed the odds of an October Fed rate hike to 50-50 from 70% earlier, and New York Fed President John Williams has said policymakers are in no rush to act. Money markets have priced three more rate moves.
Housing is the clearest channel where tighter Fed policy is actually showing up. The rise in mortgage rates alongside the sharper drop in applications makes that plainer, even with hike odds for October easing. That does not reverse the softer tone in rate expectations, but it points to weaker housing demand as a real drag on growth rather than just talk, and it keeps the broader backdrop for stocks tilted to the downside as the bond selloff continues to press on financial conditions.