In Other News · United States

Source: Axios

Mortgage rates spiked to their highest level in nearly three years, continuing their climb above the 7% threshold. Why it matters: Housing sales were already slow due to a lack of inventory and elevated rates, creating a risk that the market could further its freeze.Zoom in: The weekly average 30-year fixed mortgage rate was 7.28% as of Thursday, Freddie Mac reported. That's up 0.94 points from a year ago, and up 0.25 points from last week.Mortgage rates closely track 10-year Treasury yields, which have risen by over 1.25 percentage points since the start of the Iran war in February.The impact: Mortgage applications are plunging.The Mortgage Bankers Association reported Wednesday that applications during the week ended Sept. 25 fell 6% from a week earlier.With rates at their highest point since November 2023, home buyers are beginning to turn to adjustable-rate mortgages.ARMs made up 10.3% of mortgage applications in the most recent period, marking the highest point since October 2025, according to MBA."Affordability and borrower demand have weakened in recent weeks as the higher-rate environment continues to put pressure on both prospective homebuyers and homeowners looking to refinance," MBA CEO Bob Broeksmit said in a statement.What we're watching: There are early signs...