Mortgage Rates Climb To Over 7%

Thursday, September 24, 2026

The average 30-year fixed-rate mortgage leaped to 7.03% on Thursday, according to the Federal Home Loan Mortgage Corp., which also goes by Freddie Mac. This is the first time the rate has passed the 7% mark in 20 months, or since January 2025. While the 7% mortgage rate milestone holds no literal significance beyond the psychological effect of the round number, the sharp rise in rates since March risks further squeezing the budgets of homebuyers. And it's bound to deepen the freeze on a housing market held stagnant for years by the high cost of homeownership.

Posted by Doc_Sarvis at 01:20 PM | 5 COMMENTS | permalink | Comment on This Entry |

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Mortgage rates tend to follow the 10-year Treasury note, which has risen sharply over the summer amid concerns about high inflation as well as the size of the federal debt.

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From the article:

High mortgage rates contributed to a 2% decline in existing home sales in August from the previous month, according to the National Association of Realtors.

The median sale for an existing home was about $429,000. At that price, a single percentage point increase in the mortgage rate can cost buyers hundreds of additional dollars a month and tens of thousands over the life of the loan.

#1 | Posted by Doc_Sarvis at 2026-09-24 01:22 PM | Reply

"And it's bound to deepen the freeze on a housing market held stagnant for years by the high cost of homeownership largely created by and perpetuated by private equity firms buying homes in targeted areas unreasonably driving up prices."

#2 | Posted by eberly at 2026-09-24 01:31 PM | Reply

NYT headline for the news is a good summary:

Mortgage Rates Hit 7% as Iran War Fallout Crushes a Weak Housing Market

#3 | Posted by Doc_Sarvis at 2026-09-24 02:48 PM | Reply

#2 | Posted by eberly

I seriously doubt the high cost of homeownership is PE firms.

You can't immigrate 9Million people and not build housing, and expect housing to remain the same.

Interest rates are high because risk is high; who is going to take US Treasuries at 0%? Since it bounced above 0%, housing is stuck; people with 0% loans and refis aren't moving to 3-7% interest.

Iran War Fallout Crushes a Weak Housing Market

Its been weak since the spring of 2024, we saw the beginning of the rise in inventory on airBnB and secondary home locations/cities. Florida, and recreational lakes started stumbling.

#4 | Posted by oneironaut at 2026-09-24 03:06 PM | Reply

www.npr.org

I believe it depends on where.......

#5 | Posted by eberly at 2026-09-24 03:21 PM | Reply