U.S. mortgage rates crossed the 7 percent mark for the first time since January 2025 this week, a key psychological level for prospective homebuyers and homeowners alike.
The average rate on a 30-year fixed mortgage reached almost 7.5 percent on Sept. 25—the highest in nearly three years—according to Mortgage News Daily’s tracker.
A year ago, long-term home loans averaged approximately 6.4 percent.
Today’s mortgage market conditions could test demand as buyers either wait out the current environment or seek borrowing alternatives.
Here is what to know now that mortgage rates are above 7 percent again.
Why Mortgage Rates Have Been Climbing
A key factor behind the rise in rates has been the surge in U.S. Treasury bond yields, which the mortgage market tracks….