US Homebuyers Confront Rising Mortgage Rates and Market Challenges

WHO:

ABC News - Lisa Sturtevant, chief economist at Bright MLS

Yahoo Finance - Michael Wolf, global economist at Deloitte Touche Tohmatsu Ltd.

WHAT:

ABC News - The average rate for a 30-year fixed-rate mortgage is expected to rise again, possibly moving closer to 7%, as indicated by Freddie Mac's latest snapshot due out later Thursday.

ABC News - The 10-year Treasury yield breached 5% for the first time since 2023, reaching 5% on a Monday.

ABC News - The Federal Reserve's decision to increase its key interest rate for the first time in three years could put upward pressure on mortgage rates.

ABC News - The average rate for a 30-year fixed-rate mortgage is expected to rise again, possibly moving closer to 7%.

ABC News - The weekly average rate on a 30-year fixed-rate home loan reached its highest level in over 14 months last week at 6.76%.

ABC News - The 10-year Treasury yield breached 5% for the first time since 2023.

ABC News - The Federal Reserve signaled that another rate hike could occur later this year.

Yahoo Finance - The Deloitte 10-year Treasury five-year forecast predicts a yield of 4.20% in 2027, 4.10% in 2028, 4.00% in 2029, and 4.00% in 2030.

Yahoo Finance - The Congressional Budget Office (CBO) projects that the 10-year Treasury yield will reach 4.1% by the end of 2026, rising gradually to about 4.3% by 2030.

ABC News - The average rate for a 30-year fixed-rate mortgage is expected to rise again, possibly moving closer to 7%.

ABC News - The 10-year Treasury yield breached 5% for the first time since 2023.

ABC News - Lisa Sturtevant stated, “The rate hike all but guarantees that mortgage rates will remain stuck at or above the 7% threshold, which creates a psychological and financial barrier that will sharply squeeze affordability and sideline even more prospective buyers."

Yahoo Finance - The Congressional Budget Office (CBO) projects that the 10-year Treasury yield will reach 4.1% by the end of 2026.

ABC News - The average rate for a 30-year fixed-rate mortgage rose to 6.76%, the highest level in over 14 months.

ABC News - Mortgage rates are expected to rise closer to 7% as indicated by Freddie Mac's upcoming snapshot.

ABC News - The Federal Reserve increased its key interest rate for the first time in three years.

Yahoo Finance - The forecast predicts mortgage rates to be approximately 6.20% in 2027, 6.05% in 2028, 5.95% in 2029, and 5.90% in 2031.

Yahoo Finance - The 10-year Treasury yield was at 4.88% as of September 9, with a mortgage rate of 6.76%, resulting in a spread of 1.88 percentage points.

WHERE:

ABC News - The U.S. housing market.

WHEN:

Yahoo Finance - The forecast includes predictions for the years 2027 through 2031.

WHY:

ABC News - Rising mortgage rates are attributed to higher inflation and expectations of increased borrowing costs due to the Federal Reserve's actions, particularly following the war between the U.S. and Iran that began in late February.

ABC News - Rising mortgage rates are attributed to higher inflation and expectations of increased borrowing costs due to the Federal Reserve's actions.

Yahoo Finance - Economists expect stronger inflation and solid payroll growth to lead to further interest rate increases by the Federal Reserve.

HOW:

Yahoo Finance - The spread between the 10-year Treasury and mortgage rates has been on either side of 2.5 percentage points in recent years, compared to under two percentage points from 2010 to 2020.

Yahoo Finance - The spread is stickier than previously assumed, with Fannie Mae and Freddie Mac's MBS buyback program, launched January 8, 2026, preventing the spread from widening further but not meaningfully narrowing it.

Yahoo Finance - The spread between the 10-year Treasury and mortgage rates has been on either side of 2.5 percentage points in recent years, compared to under two percentage points from 2010 to 2020.

ABC News - Mortgage rates are influenced by inflation, Federal Reserve policy, and bond-market investors’ expectations for the economy.

Yahoo Finance - The forecast for mortgage rates is based on the yield of the 10-year U.S. Treasury note and the historical spread between Treasury yields and mortgage rates.

(UPDATED September 17, 2026 20:59 UTC)

Mortgage rates are expected to rise again, potentially approaching 7%, as Freddie Mac's latest report is set to be released later this week. This increase follows the 10-year Treasury yield breaching 5% for the first time since 2023, influenced by the Federal Reserve's recent decision to raise its key interest rate for the first time in three years. Rising inflation and anticipated increased borrowing costs, particularly in light of the ongoing war between the U.S. and Iran that began in late February, are driving these changes in the mortgage market.

(UPDATED September 17, 2026 16:59 UTC)

The average rate for a 30-year fixed-rate mortgage is expected to rise again, potentially approaching 7%, following a recent peak of 6.76%, the highest level in over 14 months. Meanwhile, the 10-year Treasury yield has surpassed 5% for the first time since 2023, with projections from the Congressional Budget Office indicating it could reach 4.1% by the end of 2026. Additionally, the spread between the 10-year Treasury and mortgage rates has remained around 2.5 percentage points, influenced by Fannie Mae and Freddie Mac's buyback program, which has kept the spread from widening further.

(UPDATED September 17, 2026 13:59 UTC)

The average rate for a 30-year fixed-rate mortgage is expected to rise again, potentially nearing 7%, as the 10-year Treasury yield has breached 5% for the first time since 2023. Lisa Sturtevant noted that this rate hike will likely keep mortgage rates at or above the 7% threshold, creating a significant barrier to affordability that could sideline many prospective buyers. Additionally, the Congressional Budget Office projects that the 10-year Treasury yield will reach 4.1% by the end of 2026, with the spread between Treasury and mortgage rates hovering around 2.5 percentage points in recent years.

(UPDATED September 17, 2026 13:08 UTC)

The average rate for a 30-year fixed-rate mortgage has climbed to 6.76%, marking the highest level in over 14 months, and experts predict it could approach 7% soon due to the Federal Reserve's recent interest rate hike, the first in three years. Economists forecast that mortgage rates will trend lower in the coming years, with estimates of approximately 6.20% in 2027 and 5.90% by 2031, driven by expectations of inflation and stronger payroll growth. This rise in mortgage rates is influenced by various factors, including inflation, Federal Reserve policies, and the yield of the 10-year U.S. Treasury note, which currently sits at 4.88%.