30-year mortgage rate hits three-year high for seventh straight week
CME FedWatch currently places the probability of a Fed hold at its 3.75%–4% range at the October Federal Open Market Committee (FOMC) meeting at roughly 78%, with a December hike viewed as the more probable next move.
What this rate environment means for brokers and buyers
Jay Lessard, president and senior loan officer at Arizona-based Sonoran Lending, previously told Mortgage Professional America that mortgage rate relief this year would hinge on a meaningful inflation slowdown.
“If inflation continues to trend lower and the economy slows without a significant resurgence in price pressures, we could see mortgage rates ease somewhat before year-end,” he said. That window is narrowing.
The 15-year fixed-rate mortgage — most often sought by homeowners refinancing existing loans — averaged 6.73%, up from 6.60% the prior week and from 5.53% a year ago.
Joel Kan, vice president and deputy chief economist at the Mortgage Bankers Association, says higher rates are dampening both refinance and purchase activity, with first-time and FHA borrowers feeling the pressure most. https://t.co/J6NsbEmSbF
— Mortgage Professional America Magazine (@MPAMagazineUS) October 7, 2026
Mortgage applications have now fallen for five consecutive weeks, according to the Mortgage Bankers Association (MBA), while refinance applications dropped to their lowest point since January 2025.
