---
title: "Expectations for a Fed rate cut cool down, US mortgage rates soar to a new high since August"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/216989857.md"
description: "U.S. mortgage rates have risen for the second consecutive week, reaching the highest level since early August, with 30-year fixed rates rising to 6.52%. This trend has led to a sharp decline in home buying and refinancing activities, with the MBA Purchase Index falling by 7.2% and the Refinance Index dropping by over 26%. Strong job growth and sticky inflation have weakened market expectations for a Fed rate cut, impacting the recovery of the housing market"
datetime: "2024-10-16T12:18:03.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/216989857.md)
  - [en](https://longbridge.com/en/news/216989857.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/216989857.md)
---

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# Expectations for a Fed rate cut cool down, US mortgage rates soar to a new high since August

According to the latest information from Zhitong Finance and Economics APP, mortgage rates in the United States have risen significantly for the second consecutive week, reaching the highest level since early August, leading to a sharp decline in home buying and refinancing activities.

Based on data released by the Mortgage Bankers Association (MBA) on Wednesday, as of the week ending October 11th, the contract interest rate for 30-year fixed-rate mortgages rose by 16 basis points to 6.52%. Over the past two weeks, this rate has increased by 38 basis points, reaching the highest level for any comparable period since February 2023.

The 15-year fixed-rate mortgage surged by 23 basis points to 5.94%, marking the largest increase since May.

Mortgage rates, which track U.S. Treasury yields, have been rising recently as strong job growth and reports of sticky inflation have prompted traders to reduce bets on significant interest rate cuts.

Since the release of this data, Federal Reserve officials have been advocating for a more gradual approach to lowering borrowing costs after a significant rate cut in September.

The rise in mortgage rates is shattering hopes for a rapid recovery in the housing market, which has been hit hard by high borrowing costs and asking prices.

The MBA's home purchase index fell by 7.2%, marking the largest decline since mid-February, while the refinancing index plummeted by over 26%, the largest weekly drop since March 2020

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