Mortgage rates are now just a little south of 7%, according to Freddie Mac, reaching their highest peak since early 2025.
The rate at the end of last week stood at 6.95% for a 30-year mortgage, with housing experts worried that the figure could reach as high as 8% by early next year.
According to Freddie Mac statistics, the rate has been flirting with 7% for most of 2024 and last year. The highest point in the last 5 years was realized in November of 2023 when it came in at 7.7%.
A steady decline over the following months saw the rate drop to its lowest point of 5.9% in February of this year.
In a statement, Joel Kan, vice president of the Mortgage Bankers Association, remarked that “ongoing market concerns over spiking energy prices, persistently high inflation, and future monetary policy pushed bond yields and mortgage rates higher last week.”
Kan additionally noted that the “current level of rates also eliminated much of the benefit to refinance for many borrowers.”
According to a press release issued by the National Association of Realtors, the new rate level appears poised to “make affordability even more challenging for buyers who are still facing elevated home prices, too.”
Tied in with the Federal Reserve’s decision last week to raise interest rates, some experts believe that that hike may ultimately relieve some of the pressure on mortgage rates.
“In the long run–think months, not days–getting inflation under control would be good for mortgage rates,” asserts U.S. News & World Report, noting that often mortgage rates and FED rates “move in opposite directions.”
Remarks Mischa Fisher, chief economist at Zillow: “Greater market confidence in inflation being under control is more likely to bring mortgage rates lower in 2027 and get recovery back on track.”
In comments published in the Washington Post, Fisher added: “Unfortunately, it’s going to be a challenged end of the year for home sales before we get there.”
September 22, 2026
By Garry Boulard
Image courtesy of Pixabay
