Mortgage rates have moved higher again, putting the cost of buying a home under fresh pressure. The average 30 year fixed rate mortgage reached 7.111% on Sept. 24 , according to Mortgage Research Center data. A week earlier, the average was 7.053%. The 15-year fixed rate also climbed, moving from 6.297% to 6.342% .
With midterm elections just six weeks away, the cost of living has monopolized the attention of American voters. A frozen housing market has become a liability for the White House.
US mortgage rates cross 7% again: What it means for homebuyers and homeowners
The Mortgage Bankers Association said the average 30-year fixed mortgage rate reached 7.12% for the week ending Sept. 18 . That was a 15-basis-point jump from the previous week and the highest weekly level since May 2024.
Reuters reported that the 30-year rate had last been above 7% in January 2025. The climb this year has come as Treasury yields have risen, with inflation and energy prices adding to concerns in financial markets.
Higher oil prices can raise concerns about future inflation. Those concerns can push bond yields higher, and mortgage rates can follow.
Why are mortgage rates rising?
The Federal Reserve sets its short-term policy rate. Thirty-year mortgages, however, are priced largely against longer-term market rates. The 10-year Treasury yield is particularly important.
That yield has moved higher as investors have worried about persistent inflation, stronger economic growth and higher oil prices. The Fed also raised its policy rate by a quarter percentage point last week, taking its target range to 3.75%-4%.
What's your loan type?
The 30-year conventional mortgage gets most of the attention, but it is only one part of the market. MRC's latest figures put the average 30-year jumbo rate at 7.282% , up from 7.184% a week earlier. The 30-year FHA rate is 6.510% , while the 30-year USDA rate is 6.571% .
The average 30-year VA rate is 6.583% , almost unchanged from the previous week's 6.579%. The difference becomes even clearer when the loan is larger. Jumbo mortgages sit above the conforming limits and can carry different pricing from standard loans.
At 7.111% , a $300,000 30-year mortgage would generate about $426,596.91 in interest over the full term, based on the federal mortgage calculator figures provided.
A $300,000 loan at 6.342% for 15 years would generate roughly $165,719.64 in interest . The 15-year option saves a large amount of interest, but it requires much faster repayment.
Buyers and homeowners now have a tougher rate decision
For people waiting to buy, the latest numbers do not offer a clear signal that cheaper mortgages are about to arrive. Rates can move lower from one day to the next. Zillow's Sept. 23 data showed exactly that, with its 30-year average falling 11 basis points from the previous day. Yet other measures still place the market around the 7% level.
The same caution applies to homeowners considering refinancing. Zillow put the average 30-year refinance rate at 7.01% on Sept. 23 , while the 15-year refinance rate was 6.47%.
Mortgage rate forecast
The Fed's latest projections suggest policymakers expect inflation to take longer to return fully to the 2% target than they previously anticipated.
And persistent inflation can keep pressure on longer-term interest rates.
Oil prices add another layer. Higher energy costs can feed into inflation expectations.
Another important layer is, stronger economic growth can push Treasury yields higher if investors expect interest rates to remain elevated.
