Mortgage rates hit 7.40%, the highest since 2023

The average 30-year fixed mortgage rate rose to 7.40% this week from 7.28%, Freddie Mac said Thursday, its highest level since November 2023. The 15-year rate rose to 6.73%, the highest since May 2024. A year ago the 30-year averaged 6.30%.

It was the seventh weekly increase in a row. Since late August the rate has climbed about three-quarters of a point, tracking the 10-year Treasury yield, which closed at 5.31% on Monday, its highest since 2002.

Borrowers are stepping back. Mortgage applications fell 4.2% in the week ending October 2, the fifth straight decline, according to the Mortgage Bankers Association, as its average contract rate reached 7.49%. Refinance applications fell 8%.

Freddie Mac’s chief economist, Sam Khater, repeated his advice that buyers shop around, saying it can save them thousands. The survey covers conventional, conforming loans for borrowers with 20% down and excellent credit.