US mortgage rates top 7% for first time in 20 months

Freddie Mac says US 30-year mortgage rates rose above 7% for the first time since January 2025, worsening a housing market already strained by years of high rates and low supply. The increase followed the Federal Reserve’s first rate hike since 2023—a quarter-point on 16 September to 3.75–4%—with most policymakers expecting another increase this year. Rates have climbed since the US-Israel war with Iran drove inflation and energy prices up; Brent crude topped $105 on Thursday as Treasury yields hit highs not seen since 2004–2007.