Key facts
- Average 30-year fixed mortgage rate reached 7.5% on October 15, 2026.
- This is the highest level since November 2023.
- Total mortgage application volume decreased by 4.2% week-over-week.
- Refinancing applications dropped 56% year-over-year.
- Purchase applications were down 15% year-over-year.
- Adjustable-rate mortgages represented 10.3% of applications.
The average rate on a 30-year fixed mortgage has climbed to 7.5%, its highest level since November 2023, according to Freddie Mac. This marks an increase from 7.28% the previous week and 6.3% a year ago. The rising borrowing costs are contributing to an already strained housing market, making homeownership increasingly difficult for American buyers.
Total mortgage application volume fell 4.2% from the previous week, with refinancing demand dropping 8% week-over-week and 56% year-over-year. Purchase applications also weakened, declining 2% from the preceding week and 15% below their year-earlier level. Adjustable-rate mortgages accounted for 10.3% of applications as borrowers sought lower initial payments.
Nationwide home prices increased 2.6% in July compared with a year earlier, according to the Federal Housing Finance Agency. The combined effect of higher mortgage rates and elevated property prices has extended the time prospective buyers need to enter the market.