US mortgage rates surpassed 7% for the first time since January 2025, according to federal lender Freddie Mac, aggravating a housing market that has endured years of high interest rates and low supply.
The 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 16 September went up by a quarter of a point, to a range of 3.75% to 4%. In new projections, a majority of the Fed’s rate-setting committee predicted at least one additional rate hike before the end of this year.
Last year, the Freddie Mac 30-year-mortgage rate, commonly used on home loans across the country, had been trending down from 7.79% – a generational high reached in late 2023.
But rates have been creeping back up since late February, when the US and Israel launched its war with Iran. The conflict drove inflation to its highest levels in three years and sharply increased energy prices.
Brent crude, the international benchmark for oil, topped $105 earlier on Thursday.#MortgageRates #USMortgage #Mortgage #HousingMarket #USHousingMarket #HomeBuying
