Mortgage Rates Hit Nearly 7% as Housing Costs Rise Ahead of Midterms

The average interest rate on a 30-year fixed mortgage soared to 7.2%, its highest in over a year, pushing homeownership further out of reach for millions of Americans.

These rising costs are driven by the Federal Reserve's recent key rate hike aimed at curbing inflation and soaring yields on 10-year Treasury bonds linked to high oil prices. Since February 28, when tensions involving Israel and Iran escalated, mortgage rates have increased significantly from a low of 5.99% earlier in the year.

Meanwhile, the average national home price remains near record highs at $429,100 as of August. While inventory provides some relief with 1.62 million unsold homes available (a supply level equivalent to roughly five months), experts warn that borrowing costs could continue climbing if interest rates rise further this year.

For prospective buyers like Alexandra DeCandia and her husband in the Washington area, these shifting economic conditions create immense stress regarding their future family planning.