(Bloomberg) -- US mortgage rates continued to climb, putting a further damper on refinancing and homebuying activity.
The contract rate on a 30-year mortgage increased 8 basis points to 6.81% in the week ended Nov. 1, the highest since July, according to Mortgage Bankers Association data released Wednesday. In the last five weeks, the rate has risen 67 basis points, the most in two years.
Mortgage rates track Treasury yields, which have risen in recent weeks as traders positioned for a Donald Trump victory in the presidential election, in which low taxes and high tariffs fuel growth and inflation. But those bets eased somewhat going into Election Day.
Yields have also been rising as strong economic data cast doubt as to whether the Federal Reserve will cut interest rates by as much as forecast by the end of next year. The central bank is still widely expected to lower rates by a quarter point at the conclusion of its two-day meeting in Washington on Thursday.
MBA’s gauge of refinancing dropped for a sixth week to the lowest level since May, marking the longest losing streak since April 2022. The purchase index declined to the lowest since August.
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.
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