30-Year Fixed Mortgage Rate Reaches 7% for First Time Since May 2025
The average rate on the 30-year fixed mortgage rose to 7.07% on Thursday, marking its first time above 7% since May 2025 according to Mortgage News Daily. This increase of 10 basis points follows a trend where mortgage rates have been rising since the start of the Iran war and are closely tied to movements in U.S. Treasury yields. The rise was driven by surging oil prices, which overshadowed an expected inflation report showing wholesale prices rose 0.4% in August. Analysts noted that recent volatility has impacted bond markets, with factors including a lackluster reaction to the Producer Price Index and prior reactions to U.S. Treasury announcements. Higher mortgage rates are increasing monthly payments for homebuyers; for example, purchasing a $430,000 median-priced home now costs $244 more per month in principal and interest compared to February 2026.
Topics: 30-year fixed mortgage housing market mortgage rates oil prices U.S. Treasury yields