US mortgage rates rise for the third consecutive week

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances (up to $766,550) in the US increased for the third consecutive week, reaching 6.86% for the week ending November 8, 2024.

US mortgage rates rise for the third consecutive week

This marks the highest level since mid-July, up from 6.81% the previous week, according to the Mortgage Bankers Association. The rise in mortgage rates mirrors the increase in Treasury yields, driven by expectations that the Federal Reserve may delay cutting interest rates longer than previously anticipated. Additionally, the impact of Trump's election victory has added upward pressure, as his policies are expected to drive inflation higher, which could constrain the Fed's ability to reduce borrowing costs.

MBA's comment

“Mortgage rates continued to climb last week, driven by higher Treasury yields as financial markets assessed the implications of a Trump presidency. The Fed’s recent 25-basis-point rate cut was already factored in and had little effect on the markets,” said Joel Kan, deputy chief economist at the Mortgage Bankers Association.