US mortgage rates top 7% for first time in 20 months
Increase comes after Fed decision to raise interest rates, as Americans struggle with high prices and stagnant wages
TL;DR
- US mortgage rates have surpassed 7% for the first time since January 2025.
- The Federal Reserve hiked interest rates due to high inflation, which directly affects mortgage rates.
- The conflict between the US and Iran has driven inflation to its highest levels in three years and increased energy prices.
- The 10-year US treasury yield reached its highest level since July 2007.
- Existing home sales hit their 2026 low in August, and pending sales have turned negative year over year.
- High mortgage rates, stagnant wages, and rising everyday costs are making homeownership difficult.
- Voter dissatisfaction with the economy is expected to impact the upcoming midterm elections.