According to the Mortgage Bankers Association (MBA), as of November 1, the interest rate on a 30-year loan at banks increased by 0.08% to 6.81% - the highest level since July. In the past five weeks, this interest rate has increased by a total of 0.67%, the largest increase in two years.
Mortgage rates typically move in tandem with Treasury yields, and they have risen in recent weeks as investors bet that Donald Trump would win the presidency, with low taxes and high tariffs likely to boost the economy and inflation. But those expectations have softened as the election approaches.
Yields also rose as strong economic data raised doubts about whether the Federal Reserve would cut interest rates as much as expected later in the year. Still, many still expect the Fed to cut rates by another quarter point at the end of its two-day meeting in Washington next Thursday (November 7).
The MBA refinancing index fell for a sixth straight week, hitting its lowest since May and also the longest streak of declines since April 2022. Demand for home loans also fell to its lowest level since August.
MBA has conducted a weekly survey since 1990, collecting data from banks and financial institutions representing more than 75% of home loan applications in the US.
