US Mortgage Rates Top 7% Amid Ongoing Housing Market Slump

The US mortgage rates have surpassed 7% for the first time in 20 months, according to Freddie Mac. This increase comes after the US Federal Reserve hiked interest rates, which directly affect mortgage rates, for the first time since 2023, citing high inflation.

Rates on September 16 went up by a quarter-point, to a range of 3.75% to 4%. Anthony Smith, a senior economist at Realtor.com, notes that 'A 7% handle is as much psychological as mathematical, and it arrives at the point in the season when leverage usually shifts toward buyers.'

The housing market has been enduring years of high interest rates and low supply. Existing home sales hit their 2026 low so far in August, and pending sales have turned negative year over year.