U.S. 30-year mortgage rate climbs by most in more than a year

US mortgage rates jumped last week by the most since July 2023, abruptly halting a monthslong slide that was helping to reinvigorate housing activity.

The contract rate on a 30-year mortgage increased 22 basis points to 6.36% in the week ended Oct. 4, according to Mortgage Bankers Association data out Wednesday. The rate now stands at the highest level since August.

The group’s refinancing index sank 9.3%, the most since mid-August. A gauge of applications for home purchases ticked lower.

Mortgage rates tend to move in tandem with Treasury yields, which have been rising recently as last week’s strong US jobs report prompted traders to sharply reduce bets on aggressive Federal Reserve interest-rate cuts.

The MBA survey, which has been conducted weekly since 1990, uses responses from mortgage bankers, commercial banks and thrifts. The data cover more than 75% of all retail residential mortgage applications in the US.