The Zhitong Finance App learned that US mortgage interest rates continued to rise, curbing home buying activity for the sixth week in a row. According to data released by the American Mortgage Bankers Association (MBA) on Wednesday, contract interest rates for 30-year fixed-rate mortgages rose 1 basis point to 7.50% in the week ending October 9, which is still the highest level since November 2023. Since the end of June, the rate has risen by nearly 1 percentage point.
The MBA Home Buying Index, which measures loan applications, fell 4% for the sixth week in a row, the longest period of continuous decline since July to August 2023.
Prior to the recent spike in mortgage interest rates, home sales showed signs of stabilizing. Second-hand housing purchases have increased slightly, according to data released by the National Association of Realtors (NAR) on Tuesday. However, this data is based on contract settlement, and mainly reflects the signing situation before the recent sharp rise in borrowing costs.
NAR chief economist Lawrence Yun said, “Due to rising interest rates, expectations for housing transaction activity in the fourth quarter will clearly decline, and there may even be a significant decline.”
According to data released by real estate agency Redfin this week, the number of contracts signed in September fell 4% month-on-month. According to Redfin, this is the biggest drop in more than three years.
Meanwhile, NAR's refinancing metrics declined for the eighth week in a row to their lowest level since early 2025.
The MBA survey has been conducted weekly since 1990, and the respondents included mortgage bankers, commercial banks, and savings institutions. The data covers over 75% of retail residential mortgage applications in the US.