Weekly Real Estate News
Summary
Freddie Mac’s 30-year fixed mortgage rate rose 25 basis points to 7.28% on Oct. 1, 2026, the highest reading in nearly three years. The separate MBA survey is at 7.30%, confirming a broad rise in mortgage borrowing costs.
Mortgage rates surged again this week, with Freddie Mac’s benchmark 30-year fixed rate climbing 25 basis points to 7.28%, its highest reading in nearly three years.
The 30-year fixed-rate mortgage averaged 7.28% as of Oct. 1, up from 7.03% a week earlier, according to Freddie Mac’s Primary Mortgage Market Survey. A year ago, the rate averaged 6.34%.
The weekly increase was the largest in four years, according to Reuters, and extends a run-up that has rapidly changed borrowing conditions heading into the fourth quarter.
Freddie Mac’s 15-year fixed rate rose to 6.60% from 6.42% the previous week. It averaged 5.55% a year ago.
“With mortgage rates on their current trajectory, the housing market continues to be supported by favorable economic conditions,” Freddie Mac Chief Economist Sam Khater said in the release.
Two major rate surveys are now above 7%
The Freddie Mac reading follows the Mortgage Bankers Association’s latest weekly survey, which put the average contract rate for conforming 30-year fixed mortgages at 7.30%. WRE reported Wednesday that MBA’s rate reached its highest level since November 2023 as total mortgage application volume fell 6%.
The two figures are not interchangeable. Freddie Mac’s PMMS tracks conventional, conforming, fully amortizing purchase loans for borrowers with excellent credit who put 20% down. MBA’s Weekly Mortgage Applications Survey measures contract rates on mortgage applications and includes points and other loan-level characteristics.
The fact that both measures have moved above 7% nevertheless points to the same deterioration in financing conditions.
Freddie Mac’s 30-year average has climbed from 6.65% on Aug. 20 to 7.28% this week, an increase of 63 basis points in six weeks. It crossed 7% last week for the first time since January 2025.
Treasury yields are driving the latest move
Mortgage rates generally move with longer-term Treasury yields rather than directly with the Federal Reserve’s policy rate. The 10-year Treasury yield has risen sharply as investors reassess inflation, economic growth and the path of monetary policy.
Reuters reported Thursday that the 10-year yield reached about 5.27%, while persistent inflation and stronger-than-expected economic growth have pushed investors toward expectations of additional Federal Reserve tightening.
That matters quickly in housing. A 25-basis-point weekly increase changes purchasing power for borrowers who were already contending with elevated home prices, and it further reduces the pool of homeowners who can lower their rate through a refinance.
MBA’s application data are already showing the effect. Purchase applications fell 4% in the week ending Sept. 25, while refinance applications declined 9%. Adjustable-rate mortgages accounted for 10.3% of application activity as borrowers sought alternatives to higher fixed-rate payments.
For lenders and brokers, the Freddie Mac release adds a second widely followed benchmark confirming that the late-summer rate increase has become a broader fourth-quarter financing problem rather than a one-week move in a single survey.
