Average long-term U.S. mortgage rates have surpassed 7% for the first time since January 2025, with the average rate on a 30-year mortgage jumping to 7.03 percent. This increase follows a five-week run of rate hikes, creating a new affordability setback for prospective homebuyers.
The rise follows a decision by the U.S. Federal Reserve to hike interest rates for the first time since 2023, citing high inflation. Contributing to this trend, the 10-year Treasury yield rose Wednesday to a level not seen in nearly two decades. Furthermore, mortgage rates have climbed more than a full percentage point since the U.S. war against Iran began.
These developments aggravate a housing market that has endured years of low supply and high interest rates, as Americans struggle with stagnant wages and high prices. As a result, more borrowers are seeking savings in riskier adjustable-rate mortgages.