Overview
- Freddie Mac reported the average 30-year fixed mortgage rate at 7.03% in its weekly survey, the first weekly reading above 7% since January 2025.
- Daily broker and lender indexes showed larger intraday moves with Mortgage News Daily and other trackers quoting 30-year rates near 7.4–7.5% on Sept. 24, which is higher than Freddie Mac’s five-day average.
- The main drivers are a surge in the 10-year Treasury yield to roughly 5.11%–5.17%, rising oil prices tied to the Iran conflict that lift inflation expectations, and the Federal Reserve’s recent 25 basis point policy rate increase.
- Higher rates are already reducing affordability and demand as mortgage applications and purchase activity weakened and more borrowers shifted toward adjustable-rate mortgages, with the MBA reporting ARMs at about 9.8% share.
- Because many homeowners still hold pandemic-era low rates, sellers are reluctant to list, which keeps inventory tight and could let elevated mortgage rates persist through the fall, prolonging pressure on home sales and monthly costs for buyers.