Mortgage Rates Near 7%, Worsening Housing Affordability Challenges

U.S. mortgage rates have reached their highest level in over a year, climbing to 6.66% last month according to Freddie Mac.

The surge in borrowing costs has made homeownership increasingly difficult for Americans, with Sen. Elizabeth Warren criticizing President Donald Trump's approach to Iran as a contributing factor.

Warren argued that the administration's actions have contributed to economic uncertainty and worsened housing affordability challenges, citing rising inflation concerns, Federal Reserve policy expectations, and geopolitical tensions as factors driving long-term borrowing costs higher.

The average interest rate on a 30-year fixed mortgage is nearing 7%, with homeowners who bought their homes at lower rates facing significantly higher costs if they were to move. This could discourage selling and deepen the housing market slowdown.