Mortgage rates top 7% for the first time since May 2024
Summary
Mortgage rates for 30-year fixed loans went above 7% last week, the highest in more than two years. This rise makes borrowing more expensive for homebuyers while housing prices remain near record highs.Key Facts
- The 30-year fixed mortgage rate reached 7.12% for the week ending September 18, 2026.
- Rates were last this high in May 2024, according to the Mortgage Bankers Association (MBA).
- Higher fixed rates led more buyers to choose adjustable-rate mortgages (ARMs), which start with lower rates but can change later.
- A 5/1 ARM means the interest rate stays fixed for five years, then adjusts with the market. These rates are over 1% lower than fixed rates currently.
- Mortgage rates often follow the 10-year U.S. Treasury yield, which rose due to concerns about inflation, government debt, and higher borrowing costs.
- The Federal Reserve increased interest rates by 0.25% recently, affecting mortgage costs.
- Higher mortgage rates may slow down home buying, adding to affordability challenges despite many potential buyers.
- Freddie Mac reported a 6.95% average 30-year mortgage rate as of September 17, 2026.
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