30-Year Mortgage Rate Hits 7% Amid Rising Inflation Fears
The average rate for a 30-year fixed-rate mortgage reached 7.07%, the highest level since May 2025, according to data from Mortgage News Daily. This increase of 18 basis points over two days has made home purchases more expensive and is expected to further slow down an already sluggish housing market. The rise in mortgage rates correlates with higher Treasury yields driven by inflation concerns and geopolitical tensions, particularly the ongoing conflict in Iran. Analysts note that as investors grow wary about government debt levels and rising oil prices, borrowing costs for consumers continue to climb. Freddie Mac reported a slightly lower average rate of 6.76%, based on applications submitted through its secondary market. Higher mortgage rates are likely to suppress home sales further, with demand expected to decline alongside each increase in interest rates. The National Association of Realtors and other economists have observed that the housing sector faces continued challenges as borrowing costs remain elevated.
Tickers: $FMCC
Topics: Federal Reserve inflation mortgage rates Treasury yields