Mortgage Rates Jump to Near Three-Year High, Pushing Buyers to the Sidelines

The 30-year fixed rate's climb is pushing mortgage applications to their slowest pace in over a year.

By THRYV Money Desk·Published October 2, 2026·Updated October 2, 2026·4 min read

Mortgage Rates Jump to Near Three-Year High, Pushing Buyers to the Sidelines

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The takeaway

The average 30-year fixed mortgage rate hit 7.433% on October 1, its highest level in nearly three years, as Fed policy moves ripple through housing. Weekly mortgage applications fell 6% to their slowest pace since 2025, MBA data show. Deputy chief economist Joel Kan said rates "jumped to their highest level in almost three years, pushing borrowers to the sidelines."

The average rate on a 30-year fixed mortgage climbed to 7.433% on October 1, its highest level in nearly three years, as this autumn's Federal Reserve policy moves work their way through the housing market.

The numbers

30-year fixed: 7.433%, down slightly from the prior day's 7.455% but up 32 basis points for the week from 7.111%.
15-year fixed: 6.634%, up 29 basis points for the week from 6.342%.
The Federal Open Market Committee raised the federal funds rate to a target range of 3.75%-4.00% at its September 15-16 meeting; the Fed doesn't set mortgage rates directly, but its benchmark rate influences them.

Buyers are pulling back

Mortgage applications fell 6% for the week ending September 25, with both purchase and refinance activity slowing to their weakest weekly pace since 2025, according to Mortgage Bankers Association data.

Mortgage rates jumped to their highest level in almost three years, pushing borrowers to the sidelines.

Joel Kan, MBA Vice President and Deputy Chief Economist

What it means for homebuyers

At current rates, a given mortgage balance carries a noticeably higher monthly payment than it did even a few months ago, which housing economists say is discouraging both first-time buyers and people considering a move. Rates remain far above the 2.65% average recorded in January 2021, when the Fed held its benchmark rate near zero; coverage of the data does not suggest rates returning to those pandemic-era lows anytime soon.

If you're shopping for a mortgage now

Compare rate quotes from at least three lenders, ask about temporary rate buydowns, and budget for the higher rate rather than counting on a near-term refinance. Locking a rate protects you if rates rise further before closing, and most loans can still be refinanced later if rates fall.

Sources

This article is original writing by THRYV. We link to primary reporting and official documents rather than reproducing them.

Mortgage rates today, Oct. 1, 2026 — Fortune

Why you can trust this article

Written and edited in-house by the THRYV Money Desk. We do not republish or reword agency copy, and we do not invent quotes, statistics, testimonials or ratings. Where figures move frequently, we point you to the primary release rather than printing a number that will be out of date. Advertising and affiliate partnerships have no influence on our reporting — see our editorial standards, fact-checking policy and affiliate disclosure. Spotted an error? Write to newsroom@thryv-news.com.

General information only. Not personalised financial, medical or legal advice.

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