US Mortgage Rates Hit Highest Level in 20 Months at 7.03%

Mortgage rates in the US have hit their highest level in 20 months, rising above 7% for the first time since January 2025. The average interest rate on a 30-year fixed mortgage now stands at 7.03%, according to data from Freddie Mac.

This increase coincides with a surge in oil prices and Treasury yields, which closely track mortgage rates. A key Treasury rate hit its highest level in nearly two decades just days after the Federal Reserve hiked benchmark borrowing costs.

The rise in mortgage rates has significant implications for borrowers, with each percentage-point increase imposing thousands or tens of thousands of dollars in additional borrowing costs each year. This comes as a double whammy for buyers, who are already facing increased prices and high mortgage rates.