Mortgage rates are back above 7%. How much higher could they climb?

TL;DR

Average 30-year mortgage rate reached 7.03%, the highest since January 2025, and 7.12% according to another source.
Rates have increased by over one percentage point since late February.
Higher inflation, tighter monetary policy, potential economic growth, and federal debt are contributing to rising mortgage rates.
The war in Iran is driving up energy costs and inflation, impacting Treasury yields and subsequently mortgage rates.
Experts are divided on future rate movements, with some forecasting further increases, while others predict a decrease by the end of 2027.
Factors like budget deficits and AI-driven economic growth may keep rates elevated long-term.
Home buyers may find opportunities in softening home prices and reduced competition after the summer season.

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