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.
US mortgage rates exceeded 7% for the first time since January 2025, driven by Federal Reserve rate hikes citing inflation and geopolitical tensions from the US-Israel war with Iran. The housing market continues to struggle with high rates, low supply, and affordability challenges affecting consumer sentiment ahead of midterm elections.