US Mortgage Rates Near 6.90% Amid Economic Shifts

US mortgage rates have significantly increased, reaching their highest levels since July, with the average rate for a 30-year fixed mortgage nearing 6.90% as of late October 2024. This rise comes amid expectations of further Federal Reserve interest rate cuts, despite strong economic indicators such as increased consumer confidence and spending. The Mortgage Bankers Association reported a decline in refinancing applications due to these higher rates, while purchasing activity remains strong as more homes are listed for sale. Treasury yields, closely linked to mortgage rates, have also hit a recent high, contributing to increased borrowing costs. Analysts suggest that the upcoming jobs report and the presidential election could further influence rate volatility. Despite these challenges, younger homebuyers continue to support market demand, making strategies to secure lower mortgage rates crucial.