Mortgage Rates Hit Their Highest Point in Months

Mortgage Weekly Update

Mortgage rates hit their highest point since April this week, according to Freddie Mac. The average rate on 30-year, fixed-rate loans clocked in at 3.05% — up from 2.99% last week.

 “As inflationary pressure builds due to the ongoing pandemic and tightening monetary policy, we expect rates to continue a modest upswing,” said Sam Khater, chief economist for Freddie Mac.

Despite the uptick, mortgage activity held largely steady. According to the Mortgage Bankers Association, overall loan applications increased a mere 0.2% for the week. When broken down by loan type, purchase applications increased 2% over last week, while refinances fell 1%. 

“Application activity changed little this week,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting. “An increase in home purchase applications offset a slight decline in refinances. The increase in purchase applications was welcome news, but was primarily driven by a 2% gain in conventional purchase applications, which kept the average loan size elevated.”

Refinances made up 63.9% of all mortgage activity this week, down from 64.5% a week prior. Government refinance applications fell 3% — a trend Kan says will likely continue.

“We continue to expect weakening refinance activity as rates move higher and borrowers see less of a rate incentive,” Kan said.

More in mortgage & housing news

  • Foreclosure filings jumped 24% in September alone, according to a new report from ATTOM Data Solutions. They’re now up 102% over the year.
  • Overall housing affordability was up for the second month in a row in August. According to the National Association of Realtors, affordability improved 1.1% in August.
  • The share of mortgage loans in forbearance fell to just 2.62% this week, according to MBA. Around 1.3 million homeowners are still on a forbearance plan.
  • Mortgage credit availability increased in September. The month’s Mortgage Credit Availability Index jumped 1.5%, indicating loosening credit standards.
  • According to a new report from First Street Foundation, about 14% of all residential properties are at risk of flooding, amounting to about 12.4 million homes. By 2051, that number will increase to 16% and 13.6 million homes.

This week in mortgage rates

Mortgage rates rose on all loan products this week, with the biggest jump on 15-year, fixed-rate loans.

Here’s how rates looked for each loan type:

Make sure to check back here next week for the latest mortgage rates and news.

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By Aly Yale / October 14th, 2021 / Categories: / Tags:

Aly Yale

Aly J. Yale is a freelance writer focusing on real estate, mortgage, and the housing market. Her work has been featured in Forbes, Bankrate, The Motley Fool, Business Insider, The Balance, and more. Prior to freelancing, she served as an editor and reporter for The Dallas Morning News. She graduated from Texas Christian University's Bob Schieffer College of Communication with a major in radio-TV-film and news-editorial journalism. Connect with her at or on Twitter at @AlyJwriter.