Mortgage Rates Surge Past 7% for First Time in Nearly Two Years

The average 30-year mortgage rate has surpassed 7% for the first time in nearly two years, according to data from Freddie Mac. This milestone marks the fifth consecutive weekly rise in mortgage rates and the highest level since January 2025.

The benchmark 30-year fixed mortgage rate is now at 7.03%, up from 6.95% last week. Analysts expect home borrowing costs to remain elevated due to ongoing inflation above the Federal Reserve's 2% target and rising energy prices.

National Association of Realtors Chief Economist Lawrence Yun wrote that 'Expect 7% as the new normal' and noted that job additions will be a key factor supporting homebuying. The central bank raised interest rates last week to combat inflation, with Fed Chair Kevin Warsh stating that hiking rates would 'support a timelier return' to 2% annual inflation.