Are mortgage rates heading back above 7%? Here’s what experts think.

Updated on: September 4, 2026 / 4:35 PM EDT / CBS News

Mortgage rates have confounded house hunters this year by steadily ticking higher. That trend is likely to continue, according to economists, with some predicting rates will climb back above 7%.

"We're effectively there," Mark Zandi, chief economist at Moody's Analytics, told CBS News. "And rates could easily go over."

The average rate for a 30-year fixed-rate mortgage rose this week to 6.71%, according to Freddie Mac, the highest in 13 months and up from below 6% in late February. Rates last reached the 7% mark in January 2025.

Experts say the main reason mortgage rates are rising is because of turmoil in the bond market. Heightened inflation concerns due to rising energy prices and swelling U.S. government debt have sparked a global bond sell-off, pushing up borrowing costs for mortgages, auto loans and credit cards.

Mortgage rates closely track the 10-year Treasury yield, which has jumped from 4.08% to 4.77% over the last six months. That's because investors are demanding higher returns to compensate for what they see as elevated risk associated with long-duration bonds. Those higher bond yields are putting upward pressure on mortgage rates.

With inflation…

Original source: https://www.cbsnews.com/moneywatch/