U.S. 30-Year Fixed Mortgage Rate Rises to 7.40% for Seventh Week

The U.S. 30-year fixed mortgage rate rose to 7.40% for a seventh consecutive week, reaching its highest level since November 2023 and increasing borrowing costs for homebuyers.

The latest rate climbed from 7.28% a week earlier and was 1.10 percentage points above the 6.30% rate recorded a year earlier. It has risen 0.75 percentage point since Aug. 20, when the rate stood at 6.65%.

The 30-year fixed mortgage rate first moved above 7% for the current cycle in the week ended Sept. 24. It was the first reading above that level since Jan. 16, 2025.

The increase followed higher 10-year Treasury yields, which remained between 5.22% and 5.31% from Oct. 1 through Oct. 9. The 10-year yield closed at 5.24% on Oct. 9.

The Federal Reserve raised its policy rate by 25 basis points on Sept. 16 to a range of 3.75% to 4%, marking its first increase since 2023. Minutes released Oct. 7 showed that most officials viewed another rate increase before year-end as appropriate.

For borrowers, a $400,000 30-year fixed mortgage at 7.40% carries an estimated monthly principal-and-interest payment of about $2,770. At 6.30%, the comparable payment would be roughly $2,476, a difference of about $294 per month or approximately $3,500 annually.

The higher rate comes after President Donald Trump directed the Federal Housing Finance Agency to pursue about $200 billion in mortgage-backed securities purchases through Fannie Mae and Freddie Mac. The 30-year fixed mortgage rate was 6.16% on Jan. 8, when the directive was issued. The latest rate was 1.24 percentage points above the 6.16% rate reported on Jan. 8.

The next key data point is the consumer price index release scheduled for 8:30 a.m. ET (12:30 UTC) on Oct. 14. The next 30-year fixed mortgage-rate survey is scheduled for Oct. 15, followed by the Federal Open Market Committee meeting on Oct. 27-28.