Mortgage rates rise, dampening refinancing and homebuying

U.S. mortgage rates rose this week, reversing recent declines and dampening a nascent recovery in homebuying and refinancing activity, according to industry data released Thursday. Freddie Mac reported the average 30-year fixed mortgage climbed to 6.34 percent from 6.30 percent the prior week, while the Mortgage Bankers Association said the contract rate on a 30-year mortgage reached 6.46 percent in the week ended September 26. Both measures also showed higher rates on 15-year loans.

Lenders and market analysts said the uptick reflects shifting expectations about the economy and future Federal Reserve policy, and it quickly reduced borrower demand. The MBA’s refinancing index fell nearly 21 percent, its largest weekly retreat this year, after a summer surge that brought refinances to their highest level since early 2022. The MBA’s gauge of home purchase applications slipped about 1 percent, and its overall measure of mortgage activity posted its biggest weekly decline since April.

Mortgage rates generally track the yield on the 10-year Treasury, which hovered near 4.10 percent midday Thursday, down from about 4.19 percent a week earlier. Recent moves in Treasury yields have been...