{
  "id": 11309894,
  "title": "Mortgage rates approach 3-year high as new applications plunge",
  "url": "https://urgent.news/2026/10/01/mortgage-rates-approach-3-year-high-as-new-applications-plunge",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-01T21:13:58.000Z",
  "source": {
    "name": "Axios",
    "slug": "axios",
    "url": "https://www.axios.com/2026/10/01/mortgage-rates-housing-sales"
  },
  "original_language": "en",
  "account": "Mortgage rates have soared to their highest level in nearly three years, now exceeding the 7% mark. This trend is raising concerns about the housing market, which has already been struggling with low inventory and high rates. According to Freddie Mac, the average 30-year fixed mortgage rate reached 7.28% last Thursday, marking a 0.94 point increase from a year ago and a 0.25 point rise from the previous week. The surge in rates is closely tied to the rise in 10-year Treasury yields, which have jumped by over 1.25 percentage points since the beginning of the Iran war in February. As a result, mortgage applications have plummeted, with the Mortgage Bankers Association reporting a 6% drop in applications for the week ending September 25 compared to the week before. With rates at their highest point since November 2023, buyers are increasingly opting for adjustable-rate mortgages, which accounted for 10.3% of applications in the latest period, a record high since October 2025. Bob Broeksmit, CEO of the Mortgage Bankers Association, stated that affordability and borrower demand have weakened as the higher-rate environment intensifies the pressure on prospective homebuyers and homeowners looking to refinance. The organization's president warned that the market conditions are becoming softer, leading to increased pricing pressures. Some home builders, like KB Home, have already adjusted their pricing to attract buyers. However, there is a glimmer of hope. Capital Economics, a financial research firm, believes that the situation could improve next year as energy prices decline and the aggressive Federal Reserve's tightening cycle does not fully materialize. According to their projection, 30-year fixed mortgage rates could average 6.25% by the end of 2027.",
  "summary": "Mortgage rates spiked to their highest level in nearly three years, continuing their climb above the 7% threshold. Why it matters: Housing sales were already slow due to a lack of inventory and elevated rates, creating a risk that the market could further its freeze. Zoom in: The weekly average 30-year fixed mortgage rate was 7.28% as of Thursday, Freddie Mac reported . That's up 0.94 points from…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}