Mortgage Rates Top 7 Percent as Inflation Persists

The benchmark 30-year fixed mortgage rate has surpassed 7 percent for the first time in two years, reaching 7.03 percent this week.

This marks the fifth consecutive weekly rise in mortgage rates and the first time it has reached 7 percent since January 16, 2025, just before President Donald Trump returned to office.

The increase is attributed to inflation remaining above the Federal Reserve's 2 percent target and rising energy prices due to the ongoing Iran conflict.

National Association of Realtors Chief Economist Lawrence Yun wrote that 'Expect 7% as the new normal. Job additions will be the one factor that can support homebuying.'