Key facts
- Average 30-year fixed mortgage rate reached 7.5% on October 16, 2026.
- This is the highest level since November 2023.
- Nationwide home prices increased 2.6% in July 2026 compared with a year earlier.
- Total mortgage application volume fell 4.2% from the previous week.
- Refinancing applications declined 8% week-on-week and 56% year-on-year.
US mortgage rates have climbed to their highest level since November 2023, reaching 7.5% for a 30-year fixed mortgage, according to Freddie Mac. This surge in borrowing costs, combined with elevated property prices, is intensifying affordability challenges for prospective homeowners. Nationwide home prices saw a 2.6% increase in July compared to the previous year. The impact of higher rates is evident in mortgage lending activity, with total application volume falling 4.2% week-on-week. Refinancing applications saw a significant drop of 8% weekly and 56% annually, as fewer homeowners find incentives to refinance at current rates.