US 30-Year Mortgage Rate Tops 7% for First Time Since January 2025, Hitting 7.03% After Five Weeks of Increases

The average rate on a 30-year fixed mortgage climbed to 7.03% this week, according to Freddie Mac data released Thursday, crossing the 7% threshold for the first time since the beginning of last year. The rise marks the fifth consecutive week of increases following a steady ascent that began in mid-August, and represents the highest rate during either of Donald Trump's presidential terms.

The move past 7% is being felt across the housing market by buyers, sellers, and builders alike. Bright MLS chief economist Lisa Sturtevant described the level as "a foreboding psychological barrier," warning that crossing it could create a chilling effect that slows home sales transactions considerably this fall. Higher rates translate directly into larger monthly payments and reduced purchasing power for prospective buyers.

The rate surge is tied in part to rising Treasury yields, with the 10-year US Treasury yield climbing to around 5.12%, which would be its highest level since July 2007. The Federal Reserve under Chair Kevin Warsh raised its benchmark rate by a quarter point last week, its first hike since July 2023, and Fed members have signaled at least one additional hike is expected in 2026. While mortgage rates do not move in lockstep with Fed policy, the central bank's tightening posture has reinforced upward pressure on borrowing costs. Rates remain below the 7.79% peak reached in 2023 during the period of decades-high inflation.