Mortgage Rates Surge Past 7% as Experts Predict Further Increases
Mortgage rates hit 7.03%, the highest since January 2025. Experts predict potential hikes amid inflation and economic uncertainty.
POLICY WIRE — Washington, D.C. — Mortgage rates have climbed above 7% for the first time since January 2025, according to new data from Freddie Mac released on Thursday. The average 30-year fixed-rate mortgage now stands at 7.03%, a significant jump from the 5% level seen in late February.
The latest figures from the Mortgage Bankers Association (MBA) show that the 30-year fixed-rate mortgage reached 7.12% during the week ending Sept. 18, reflecting continued upward pressure. Analysts point to rising inflation, tighter monetary policy, and increased federal debt as key drivers of the trend, with MBA’s Joel Kan noting these factors have contributed to the sharp increase in borrowing costs.
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The 30-year fixed-rate mortgage typically mirrors the 10-year Treasury yield, which has surged in recent months due to geopolitical tensions in Iran and growing concerns over government debt. Zillow Home Loans’ Kara Ng highlighted that the recent spike in the Treasury yield—reaching 5.1% on Thursday, the highest in two decades—introduces further risk of higher mortgage rates. While some experts predict a potential dip by year-end, others warn that ongoing volatility could keep rates elevated for months.
Reporting by Policy-Wire (PW)
