T
he latest mortgage rate numbers suggest another fall season milestone: rates have reached 7% for the third consecutive year. This trend is a far cry from what the real estate industry had hoped for after the Federal Reserve's 50-basis point rate cut on Sept. 18. However, some economists believe that any impact from the Fed's move may have already been factored into the late-summer declines.

    The median monthly mortgage payment has risen to $2,587, a $100 increase from last month, according to Redfin. This surge in payments is contributing to a slowdown in mortgage loan applications and existing home sales, which fell short of expectations in September. Despite these challenges, some experts predict that the market will start to turn around before year's end.

    Broader economic factors may also play a role in bringing down mortgage rates. The labor market and core inflation are expected to cool, potentially leading to lower interest rates. However, this week's employment reports may be difficult to decipher due to various external factors, including the upcoming election, recent hurricanes, and an ongoing strike at Boeing. Economists anticipate a modest 110,000 new jobs in October, down from September's 254,000 additions.