Mortgage rates climb to 7.53%, raising housing costs and debt worries

The average 30‑year fixed mortgage rate hit 7.53% on Friday, while other reports note a recent level of 7.28% as the highest since November 2023. The rise follows a jump in Treasury yields, with the 10‑year benchmark above 5% and the 30‑year yield above 5.6%, and is linked to higher inflation tied to the war launched by the United States and Israel. Mortgage applications fell 6% for a fourth consecutive week, and the higher rate adds roughly $276 to the monthly payment on a $400,000 loan.

At the same time, the labor market showed weak job growth, with only 29,000 jobs added in September and the unemployment rate edging up to 4.2%, while consumer confidence slipped to 81.9, the lowest since April 2014. Analysts note that a move to an 8% rate could make homeownership unaffordable for an additional 4.3 million families.