7.28% Mortgage Rate Puts October Home Demand to the Test

Freddie Mac’s October 1 mortgage survey put the 30-year fixed rate at 7.28%, up from 7.03% on September 24 and 6.34% a year earlier. The payment jump is already clear, but the next useful test is the lag: October’s pending contracts and permits will show whether buyers and builders are changing plans after several weeks of rising borrowing costs. On a $343,280 mortgage, principal and interest now comes to about $2,349 a month, $215 more than at last year’s rate. The September closings due October 13 will arrive too soon to capture much response to the latest rate move.

Key Takeaways Freddie Mac’s 30-year fixed rate rose to 7.28% on October 1, from 7.03% on September 24. A $343,280 loan costs…