U.S. mortgage rates experienced their most significant increase since July 2023, abruptly halting a months-long decline that had been boosting housing market activity. According to data from the Mortgage Bankers Association (MBA), the contract rate for 30-year mortgages rose by 22 basis points to 6.36% during the week ending October 4, reaching the highest level since August.
The MBA's refinancing index fell by 9.3%, marking the largest drop since mid-August, and indicators for home purchase mortgage applications also declined. Mortgage rates typically fluctuate in sync with U.S. Treasury yields, which have recently risen following the release of a strong U.S. employment report. This report led traders to significantly reduce their bets on aggressive interest rate cuts by the Federal Reserve.
