US mortgage rates rose for a seventh consecutive week, reaching 7.4% on the 30-year fixed loan — the highest level since November 2023. The climb, driven by rising Treasury yields and inflation fears linked to President Trump’s Iran policy, has added 0.84 percentage points to borrowing costs in seven weeks. Rates are up 1.4 percentage points since February, when they dipped below 6% for the first time since 2022.
The surge is stalling the housing market: one-fifth of listings saw price cuts in September, the highest share in four years, while inventory and pending sales softened. Realtor.com economist Hannah Jones cited “mounting affordability pressure” as buyers retreat and sellers hold firm. With midterm elections just weeks away, the rate spike poses a political challenge for Republicans.
The Fed raised rates in September and traders now see a 76% chance of another hike by year-end, though only a 20% probability of a move at the October meeting.
Source: Financial Times Markets · Summarized by HeadlinesBriefing