U.S. mortgage rates for 30-year fixed mortgages have climbed to 7.03% weekly average and 7.37% daily, marking the highest levels in nearly 2.5 years amid five consecutive weeks of increases driven by geopolitical uncertainty and rising Treasury yields. The rate surge is making homeownership increasingly unaffordable for Americans, with monthly payments rising over $276 since late February on a $400,000 loan, while some markets like Utah see 91% of renters unable to afford median home payments.
Mortgage rates have risen to 7.45% according to daily tracking, though Freddie Mac's weekly survey shows 7.03%. The increase follows inflation reports, Fed commentary, higher oil prices, and stronger economic data that raise expectations for further rate hikes.
Mortgage rates exceeded 7% for the first time since May 2022, with 30-year fixed rates reaching 7.12% the week of September 18, driven by elevated Treasury yields amid inflation concerns. Higher borrowing costs are straining housing affordability as buyers increasingly turn to riskier adjustable-rate mortgages offering lower initial rates.