30-year fixed mortgage rate rises above 7% for first time in over a year
30-year fixed mortgage rates top 7% as borrowing costs jump for homebuyers See what higher rates mean for your monthly payment and housing budget
The average rate on the 30year fixed mortgage climbed to 7.07% on Thursday, according to Mortgage News Daily, marking the first time it has moved above 7% since May 2025. The increase came after a rise of 10 basis points from the previous day.
Mortgage rates generally move in the same direction as the U.S. 10year Treasury yield. In this case, higher Treasury yields followed a jump in oil prices and weaker market reaction to the latest producer price data, which showed wholesale inflation rose 0.4% in August, matching expectations.
Rates have been increasing since the start of the Iran war, when the 30year fixed rate had recently been near 5.99%. For a buyer financing a $430,000 home with a 20% down payment, the monthly principal and interest payment is now about $244 higher than it was at the end of February. Higher borrowing costs also came as U.S. homebuilder stocks fell after a report showed existing home sales declined even as supply rose.