Trump Seeks Rate Cut as Mortgage Costs Hit Near Three-Year High

The Federal Reserve raised its benchmark interest rate by a quarter-point, bringing the target range to 3.75% to 4.00%. President Trump says he believes interest rates should be 1% or less.

According to Freddie Mac, the average long-term U.S. mortgage rate has jumped this week to 7.28%, its highest level in nearly three years. This marks the sixth consecutive week that mortgage rates have increased.

The average 30-year fixed-rate mortgage rate has risen from 7.03% last week, and is now at its highest since November 2023. The average 15-year fixed-rate mortgage rate has also climbed to 6.60%, up from 6.42% last week.

Experts estimate that the roughly 1.3-percentage-point increase in rates will add about $276 a month to payments on a $400,000 mortgage. This could limit homebuyers' purchasing power and lead some prospective buyers to delay buying.