Mortgage rates are back above 7%. How much higher could they climb?
Updated on: September 24, 2026 / 3:46 PM EDT / CBS News
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.