Mortgage Rates Surge Near 7%, Inflation Fears Drive Rate Hikes
U.S. mortgage rates have risen to near 7%, their highest level since June 2025, as inflation fears continue to pressure homebuyers and shape the outlook for other assets.
The average 30-year fixed mortgage rate increased to 6.85% in the week ended September 4, according to Reuters, driven by rising Treasury yields.
Freddie Mac's latest weekly survey showed a slightly lower 6.71% average for the week ended September 3, up from 6.66% a week earlier.
The upcoming August CPI report on September 11 could have a significant impact on mortgage rates, which can rise before the Federal Reserve changes its benchmark rate.
Markets are divided over whether policymakers will raise interest rates or hold steady at the Fed's September 15-16 meeting, with most economists still expecting no change but a growing number predicting at least one additional hike this year.