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7% Is Back: Mortgage Rates Hit 20-Month High

  • September 25th

by UrbanTurf Staff

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Mortgage rate chart_09-24-26 (1).png

For the first time in 20 months, the average rate on a 30-year fixed mortgage is above 7%. 

Freddie Mac reported 7.03% on the 30-year rate this week, up from 6.95% the week before and 6.30% a year ago. It was the fifth straight weekly increase; the last time Freddie's weekly survey showed rates above 7% was in January 2025. 

“Beyond the immediate financial constraints, the 7% threshold is a foreboding psychological barrier,” Bright MLS chief economist Lisa Sturtevant told CNN. “Crossing this mark could create a chilling effect on the market, leading to home sales transactions to slow considerably this fall.”

The 7% figure is partly symbolic, but the extra cost is real. For a $700,000 home in the DC area bought with 20% down, the monthly principal and interest payment at 7.03% comes to about $3,737. At last year's 6.30% rate, the same loan would have cost about $3,466 a month, so today's buyer pays roughly $270 more each month, or more than $3,200 a year.

See other articles related to: interest rates, mortgage rates

This article originally published at https://dc.urbanturf.com/articles/blog/7_is_back_mortgage_rates_hit_20-month_high/25038.

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