The average rate on a 30‑year fixed‑rate mortgage in the United States has risen above 7 percent, marking the first time it has crossed that threshold since May 2024, CBS News reported.
After hovering below the 7 percent mark for roughly two years, the rate’s climb reflects a broader shift in borrowing costs that has drawn attention from prospective homebuyers and industry analysts alike.
CBS News business contributor Javier David examined the factors behind the surge, noting that persistent inflation and heightened uncertainty in global markets are key contributors to the upward pressure on mortgage rates.
Higher inflation has prompted the Federal Reserve to maintain an aggressive stance on interest‑rate policy, a move that typically pushes mortgage rates higher as lenders adjust to the cost of funding.
The rise above 7 percent could dampen demand for new home loans, as higher monthly payments make borrowing less affordable for many consumers, potentially slowing activity in the housing market.
<small>Source: CBS News — read the original story there.</small>