US Mortgage Rates Rise Above 7%, Increasing Pressure on Housing Affordability
USA: Mortgage rates surpassed the 7% mark this week for the first time since January 2025, reaching their highest level during either of Donald Trump’s presidential terms. According to Freddie Mac, the average 30-year fixed mortgage rate increased to 7.03%, up from 6.95% the previous week.
This marked the fifth consecutive week of rising mortgage rates, further increasing pressure on housing affordability. Higher borrowing costs translate into larger monthly mortgage payments and reduced purchasing power for prospective homebuyers. Nevertheless, rates remain below the 7.79% peak recorded in 2023, when inflation was running at multi-decade highs.
The latest increase also marks a reversal from earlier expectations of easing borrowing costs. Around seven months ago, the average 30-year mortgage rate briefly fell below 6%, raising hopes of a recovery in the housing market. However, those expectations have weakened as the war in Iran has contributed to higher oil prices, adding renewed inflationary pressure and limiting the decline in mortgage rates.
Source: CNN
