Rising Mortgage Rates Hit 7-Year High: What Homebuyers Need to Know

Mortgage rates have been rising for six consecutive weeks, reaching their highest level since November 2023 at 7.28% according to Freddie Mac data released this week.

The increase is largely driven by turmoil in the bond market, with investors worried that the Iran war and increased government spending will push inflation higher and prompt the Federal Reserve to raise interest rates further.

While high mortgage rates may deter some homebuyers, experts say a sub-7% rate may still be achievable for those willing to take on riskier loans or make larger upfront payments.