US 30-year mortgage rate tops 7%, hits 2-year high
The increase adds hundreds of dollars to monthly payments and is likely to further weaken purchase and refinance demand, Freddie Mac said.
- On Thursday, Freddie Mac reported the average 30-year fixed mortgage rate climbed to 7.03% this week, marking the fifth consecutive weekly increase and the highest level since January 16, 2025.
- Surging 10-year Treasury yields, which hit 5.11% on Wednesday, drove the increase as investors react to inflation and energy volatility stemming from the war in Iran.
- Borrowing costs are tightening housing affordability, prompting nearly 10% of borrowers to opt for adjustable-rate mortgages last week, while major homebuilders like Lennar face pressure from higher costs.
- Crossing the 7% threshold creates a "foreboding psychological barrier" for buyers, according to Bright MLS chief economist Lisa Sturtevant, slowing market activity across the United States.
- Federal Reserve policymakers signal potential future rate hikes as economists warn mortgage rates may remain elevated, though modest relief could arrive if inflation moderates by year-end.
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213 Articles
The Bigger Economic Story Behind Higher Mortgage Rates
Economist Jane Liu, Ph.D. examines what the return of 7 percent mortgage rates reveals about the broader economy. Liu looks beyond housing to explore how persistent inflation and higher interest rates are reshaping investment, capital allocation and the way economists measure money.
Mortgages Soar as Fed Hikes Interest Rates
Mortgages Soar as Fed Hikes Interest Rates Blake Thor Tue, 09/29/2026 - 19:03 The rate for a 30-year fixed-rate mortgage surpassed 7% for the first time since January 2025 last week, according to federal lender Freddie Mac. That’s after the Federal Reserve’s first rate hike since 2023, raising rates by a quarter of a percentage point earlier this month. The Fed said the increase was necessitated by rising inflation, but it could spell bad news f…
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