The average rate on the popular 30-year fixed mortgage crossed over 7% on Thursday for the first time since May 2025, hitting 7.07%, according to Mortgage News Daily. That is an increase of 10 basis points from Wednesday. A basis point equals 0.01%.
Mortgage rates loosely follow the yield on the U.S. 10-year Treasury. It rose again Thursday as oil prices surged higher. That overshadowed a wholesale inflation reading that showed prices rose 0.4% in August, which was in line with Dow Jones consensus estimates.
“It’s been a rough couple of days for the bond market,” said Matthew Graham, chief operating officer at Mortgage News Daily. “Yesterday, it was [Treasury Secretary] Bessent and the reaction to the Treasury buyback announcement. Today it is an overnight surge in oil prices and a lackluster reaction to the Producer Price Index (PPI).”
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Mortgage rates have been rising since the start of the Iran war. Rates hit a low of 5.99% the day before the war started. For comparison, for a buyer purchasing a $430,000 home (right around the national median price), using a 30-year fixed loan with a 20% down payment, their monthly payment of principle and interest would be $244 higher today than it was at the end of February.
Stocks of the U.S. homebuilders were already moving lower Thursday, after a monthly report on existing home sales showed sales falling and home prices rising, even amid higher supply.