US mortgage rates continue to rise, pushing down home purchasing activity for a sixth straight week. The contract rate on a 30-year fixed mortgage ticked up 1 basis point to 7.50% in the week ended Oct. 9, still the highest level since November 2023, according to Mortgage Bankers Association data released Wednesday. Rates are up nearly 1 percentage point since the end of June. The MBA’s purchase index, which measures loan applications, dropped 4%, marking the sixth straight weekly decline — the longest such stretch since July-August 2023. The gauge stands at the lowest level since early 2025.
Home sales had shown signs of stabilizing prior to the recent run-up in mortgage rates. Data out Tuesday from the National Association of Realtors showed a slight increase in purchases of previously owned homes. However, those data are based on contract closings and mainly reflected contract signings prior to the latest surge in borrowing costs. “The fourth-quarter outlook for closing activity will clearly be down, maybe even measurably down,” because of higher rates, said Lawrence Yun, NAR chief economist. Data released this week from brokerage Redfin Corp. showed contract signings plunged 4% in September from a month earlier. That was the biggest decline in more than three years, according to Redfin’s figures. Meanwhile, MBA’s refinance gauge fell for an eighth straight week, to the lowest level since early 2025.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing