Mortgage rates surpass 7% for first time since January 2025

The 7% mortgage rate is back, and it brought friends. Freddie Mac reported on September 24 that the average 30-year fixed-rate mortgage climbed to 7.03%, up from 6.95% the prior week and marking the highest level since January 2025. That ends a roughly 20-month window in which rates stayed below the 7% line. Five weeks of climbing and no end in sight The 7.03% figure from Freddie Mac actually understates the problem. The Mortgage Bankers Association, which uses a slightly different methodology, recorded an average rate of 7.12% for the week ending September 18. That’s the highest reading from the MBA since May 2024. The increase wasn’t a sudden spike. Rates have risen for five consecutive weeks, a steady grind higher fueled by climbing Treasury yields and persistent inflation worries. To put the move in perspective: one year ago, in late September 2025, the average 30-year rate sat at 6.30%. That 73-basis-point jump in twelve months translates to real money on a monthly payment. On a $400K loan, the difference between 6.30% and 7.03% adds roughly $200 per month, or about $2,400 per year. The Federal Reserve didn’t help matters. The week before Freddie Mac’s report, the Fed hiked it...