Mortgage Rates Surge Past 7%, Impacting Homebuyer Confidence
WHO:
CBS News - Jake Krimmel, senior economist at Realtor.com
CBS News - Joel Kan, vice president and deputy chief economist for the Mortgage Bankers Association (MBA)
CBS News - Kara Ng, senior economist at Zillow Home Loans
CBS News - Lawrence Yun, chief economist for the National Association of Realtors
WHAT:
[01:15 PM EDT] - CBS News - The average 30-year fixed-rate mortgage is now 7.03%, marking the highest level since January 2025.
[01:15 PM EDT] - CBS News - The 30-year fixed-rate mortgage hit 7.12% for the week ending Sept. 18.
[01:15 PM EDT] - CBS News - Zillow predicts mortgage rates could dip to 6.7% by the end of the year and 6.3% by the end of 2027.
[01:15 PM EDT] - CBS News - The average 30-year fixed-rate mortgage is now 7.03%, marking the highest level since January 2025.
[01:15 PM EDT] - CBS News - Rates have increased by more than a full percentage point since the end of February, when they briefly dipped below 5%.
[01:15 PM EDT] - CBS News - The 30-year fixed-rate mortgage hit 7.12% for the week ending Sept. 18.
[01:15 PM EDT] - CBS News - The 10-year Treasury yield hit 5.1%, the highest level in around two decades.
CBS News - Mortgage rates have surged above 7%, with the average 30-year fixed-rate mortgage at 7.03%.
CBS News - The 30-year fixed-rate mortgage hit 7.12% for the week ending Sept. 18.
CBS News - Inflation in August was reported at 3.4% on an annual basis.
CBS News - More than one in five homes in the market saw their price cut in August.
WHERE:
CBS News - The data regarding mortgage rates is based on national averages in the United States.
WHEN:
CBS News - The average mortgage rate of 7.03% is the highest since January 2025.
CBS News - The 30-year fixed-rate mortgage reached 7.12% for the week ending Sept. 18.
CBS News - Interest rate traders are pricing in a 66% likelihood of a Federal Reserve rate increase at its next meeting in October.
WHY:
[01:15 PM EDT] - CBS News - Inflation in August stood at 3.4% on an annual basis, up one percentage point since the war started.
[01:15 PM EDT] - CBS News - Higher inflation, the prospect of tighter monetary policy, potentially stronger economic growth, and ballooning federal debt have pushed up mortgage rates.
CBS News - Higher inflation, tighter monetary policy, stronger economic growth, and ballooning federal debt have contributed to rising mortgage rates.
CBS News - The ongoing war in Iran is impacting inflation and borrowing costs.
HOW:
[01:15 PM EDT] - CBS News - Volatility has increased in recent days, with the 10-year Treasury yield hitting 5.1%, the highest level in around two decades.
[01:15 PM EDT] - CBS News - Volatility in the bond market has increased, with the largest single-day increase in the 10-year Treasury yield since April 2025.
CBS News - The 30-year fixed-rate mortgage tends to follow the 10-year Treasury yield, which has increased due to market volatility.
CBS News - Experts suggest that expectations of additional rate hikes could pressure the housing market further.
(UPDATED September 25, 2026 13:03 UTC)
The average 30-year fixed-rate mortgage has reached 7.03%, the highest level since January 2025, with rates peaking at 7.12% for the week ending September 18. This surge in mortgage rates comes amid rising inflation, which stood at 3.4% in August, marking a one percentage point increase since the onset of the war. However, Zillow forecasts that mortgage rates could decline to 6.7% by the end of this year and further drop to 6.3% by the end of 2027, despite recent volatility in the market, including the 10-year Treasury yield hitting 5.1%, the highest in nearly twenty years.
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(UPDATED September 25, 2026 03:59 UTC)
The average 30-year fixed-rate mortgage has climbed to 7.03%, the highest level since January 2025, with rates rising more than a full percentage point since late February when they briefly dipped below 5%. Additionally, the 10-year Treasury yield has reached 5.1%, marking the highest level in around two decades, driven by factors such as higher inflation and the potential for tighter monetary policy. This increase in mortgage rates has been accompanied by significant volatility in the bond market, highlighted by the largest single-day rise in the 10-year Treasury yield since April 2025.
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(UPDATED September 24, 2026 17:59 UTC)
Mortgage rates have surged above 7%, with the average 30-year fixed-rate mortgage now at 7.03%, marking the highest level since January 2025. For the week ending September 18, this rate peaked at 7.12%, while over one in five homes on the market experienced price cuts in August, reflecting the impact of higher inflation and tighter monetary policy. Experts indicate that the ongoing war in Iran is also affecting inflation and borrowing costs, contributing to expectations of further rate hikes that could pressure the housing market.