US Mortgage Rates Reach 7.5%; Home-Buying Slump Hits Sixth Week

US mortgage rates have continued to rise, with the contract rate on a 30-year fixed mortgage increasing one basis point to 7.50% for the week ended Oct 9. According to Straits Times Business, this represents the highest level since November 2023 and an increase of nearly one percentage point since the end of June.

The Mortgage Bankers Association’s purchase index, which measures loan applications, dropped 4% for the sixth consecutive week. Bloomberg notes this is the longest stretch of weekly declines since July-August 2023. Straits Times Business reports that the gauge is currently at its lowest level since early 2025.

While data from the National Association of Realtors released on Oct 13 showed a slight increase in purchases of previously owned homes, Straits Times Business reports that these figures are based on contract closings that primarily reflected signings made before the recent surge in borrowing costs. Lawrence Yun, the NAR chief economist, stated that the fourth-quarter outlook for closing activity will likely be down due to higher rates.

Additionally, Redfin Corp. data showed that contract signings fell 4% in September from the previous month, which Redfin characterizes as the largest decline in over three years.

Brief written by urgent.news from Bloomberg, Straits Times Business — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.