Why are U.S. mortgage rates above 7 percent now?

The article links the rise to broader inflation pressure, higher fuel costs, and a Federal Reserve rate hike this month. It says affordability concerns are also intensifying ahead of the November midterm elections.

How high did the 30-year U.S. mortgage rate go in the latest Freddie Mac data?

It averaged 7.03 percent on Thursday. The article says this is the highest level since January 16 last year and well above 6.30 percent a year earlier.

What happened to U.S. new home sales in August?

New U.S. home sales rose 6.4 percent from July, reaching a seasonally adjusted annual rate of 684,000. Even so, sales remained 2.0 percent below August 2025.

US 30-year mortgage rates top 7%, highest in Trump presidency

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Summary

U.S. 30-year mortgage rates rose above 7 percent in Washington on Thursday, reaching their highest level since Donald Trump returned to the presidency. The average rate hit 7.03 percent, up from 6.30 percent a year earlier, according to Freddie Mac. The increase adds to affordability concerns for voters ahead of November midterm elections. Higher fuel costs, inflation, and a recent Federal Reserve rate hike are also pressuring consumers and the housing market.

Key Facts

The average 30-year fixed-rate mortgage was 7.03 percent on Thursday, according to Freddie Mac.
That rate was up from 6.30 percent in the same period a year earlier.
It was the highest average level since January 16 last year, just days before Trump returned to the White House.
The Commerce Department said new U.S. home sales rose 6.4 percent in August from July, to a seasonally adjusted annual rate of 684,000.
August new home sales were still 2.0 percent below the level in August 2025.

By AFP

Published Sep 25, 2026 1:43 am KST

For sale sign is seen outside of a home in Arlington Heights, Ill., Sept. 16. AP-Yonhap

WASHINGTON — U.S. mortgage rates have exceeded 7.0 percent, data showed Thursday, reaching their highest level since Donald Trump returned to the presidency as voters grapple with high costs of living ahead of midterm elections.

The popular 30-year fixed-rate mortgage averaged 7.03 percent as of Thursday, a stark uptick from 6.30 percent the same period a year ago.

This is the highest average level since January 16 last year, just days before Trump returned to the White House, according to data from mortgage finance giant Freddie Mac.

Affordability is a major concern for U.S. voters just weeks before key midterm elections in November.

War in the Middle East, which unfolded after U.S.-Israel strikes on Iran in late February, has caused fuel prices to surge as Tehran retaliated by blocking a vital waterway for energy transit.

The cost of regular gasoline, which U.S. households rely on, and diesel needed by farmers and truckers have both rocketed — putting pressure on consumers and businesses alike.

Higher diesel costs in turn threaten to filter through the world's biggest economy more broadly.

As inflation climbed, the U.S. central bank this month raised interest rates for the first time since 2023 in an effort to fight price increases.

Already, higher mortgage rates in the aftermath of the Covid-19 pandemic have weighed on the U.S. housing market.

This week's uptick is set to hit prospective homebuyers further.

A separate report Thursday by the Commerce Department showed that sales of new U.S. homes rose by 6.4 percent in August on a month-on-month basis.

This took sales to a seasonally adjusted annual rate of 684,000.

Despite the month-on-month increase, the level is 2.0 percent below that of August 2025.

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