Mortgage Rates Top 7% for First Time Since Early 2025 in Blow to Homebuyers

Mortgage rates surged past the 7% threshold for the first time since January 2025 this week, propelled by skyrocketing Treasury yields and energy shocks stemming from the U.S.-Iran war. The average rate on 30-year fixed home loans hit the 7.03% mark for the week ending Sept. 24, up 8 basis points from 6.95% the previous week, according to Freddie Mac. For perspective, rates averaged 6.3% one year ago."The housing market remains supported by a solid labor market and an economy that is growing at a healthy rate," says Sam Khater, Freddie Mac's chief economist.Although daily mortgage indicators have flickered above 7% in recent weeks, this is the first time in 20 months that Freddie Mac's weekly average has topped the key threshold. This latest readout comes on the heels of a 19-basis point jump recorded on Sept. 17, which marked the largest one-week increase since April 2025. Realtor.com® senior economist Anthony Smith explains that the 10-year Treasury yield, which mortgage rates closely track, drove the bulk of the recent surge. On Wednesday, the yield reached 5.11%—its highest level since July 2007. This spike is tightly linked to escalating inflationary pressures, with Brent crud...