US mortgage rates fell for a third straight week, though a decline in purchase activity showed borrowing costs remain prohibitively high for many prospective buyers. The contract rate on a 30-year fixed mortgage declined 7 basis points to 7.30% in the week ended Oct. 30, according to Mortgage Bankers Association data released Wednesday. Despite the retreat, rates are nearly a full percentage point higher than a year ago and close to the highest since 2023.
The MBA's purchase index, which measures loan applications to buy homes, fell 2%. The gauge has declined in eight of the last nine weeks and is close to the lowest since January 2025. A measure of refinancing activity barely rose. The return of 7% mortgage rates since mid-September has further weakened an already moribund housing market. An index of contract signings on previously owned homes fell to a record low in September, and residential construction has weighed on economic growth in all but one quarter since the start of 2025.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing