Mortgage Rates Cross 7% Amid Rising Inflation Fears and Political Uncertainty
On Thursday, September 10, 2026, mortgage rates crossed the 7% threshold for the first time in over a year due to rising oil prices, hot wholesale inflation data, and political uncertainty. The average rate reached 7.07%, according to Mortgage News Daily, driven by an increase of 10 basis points from the previous day. This rise was supported by surging Treasury yields, with the 10-year yield hitting more than 4.9% after rising over 8 basis points on Thursday alone. The bond market selloff has been fueled by renewed inflation concerns following oil prices crossing $100 a barrel and producer price data showing an uptick in August. Additionally, President Trump's announcement of a potential $5,000 payment to every adult if Republicans retain control of Congress added further uncertainty about fiscal policy and the national debt. Freddie Mac reported slightly lower rates at 6.76% for the week ending Wednesday, but Zillow data showed current mortgage purchase rates averaging around 6.64% for a 30-year fixed loan on Thursday.
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Topics: bond market inflation mortgage rates Treasury yields