The US mortgage rates are approaching 7%, creating another obstacle for homebuyers already struggling with high housing costs and limited affordability.
The average 30-year fixed mortgage rate reached 6.76% last week, its highest level in more than 14 months, according to Freddie Mac. Other mortgage trackers have already recorded rates around or above 7%.
The Federal Reserve’s first interest rate increase in three years could add further pressure. Although the Fed does not directly set mortgage rates, its decisions influence bond markets and Treasury yields that help determine borrowing costs.
The housing market has already struggled since mortgage rates began climbing from pandemic-era lows. High home prices and a persistent shortage of housing have further limited affordability.
Economists cited in the report warned that sustained rates around 7% could discourage additional buyers and further weaken housing activity, although the extent of future increases remains uncertain.
Related Tweet:
STRUGGLING MARKET: Home shoppers holding out for relief from rising mortgage rates may be in for a long wait. https://t.co/49E0MJQ51J
— WPLG Local 10 News (@WPLGLocal10) September 17, 2026
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