30-year mortgage rates surpass 7% after rising for 5 weeks

In a blow to Americans in the market for a new home, the average long-term mortgage rate surpassed 7% this week for the first time in nearly a year, one popular metric revealed Sept. 24.

The average 30-year fixed-rate mortgages jumped to 7.03%, according to data from Freddie Mac, a federal lender. That's up from last week when it averaged 6.95% and up from 6.30% this time last year.

Potential homebuyers now face the highest average 30-year mortgage rate since Jan. 16, 2025, when it stood at 7.04%, and the highest long-term rate since President Donald Trump's second term began.

The increase comes about a week after Federal Reserve policymakers voted to raise their benchmark for short-term interest rates to address the nation's stubborn inflation problem. While the two rates are indirectly linked, the 30-year fixed rate tends to follow the 10-year Treasury note's trajectory instead. As of Sept. 24, it was hovering around 5%, according to Fed data, up from 4.16% this time last year.

Several factors influence the bond market and mortgage rates, including inflation expectations that are high in part thanks to rising energy prices linked to the Iran war and other conflicts around the world that…

Original source: https://www.usatoday.com/money/