U.S. mortgage interest rates exceeded 7.0%, a new high since Trump returned to the presidency
Quick Look
- 30-year fixed mortgage rate rose to 7.03% today, the highest level since Trump returned to the presidency.
- The report pointed out that this increase in interest rates has increased the burden on American households, and factors such as Iran's blockade of the Strait of Hormuz, which has led to soaring fuel prices, and the Federal Reserve's interest rate hikes, have jointly affected consumer and business pressures.
- Although new home sales increased by 6.4% monthly in August, the annual rate was still 2.0% lower than the same period last year.
AI-generated summary
Why It Matters
U.S. mortgage interest rates have continued to be high after the COVID-19 epidemic, and have recently risen further due to inflationary pressure and the Federal Reserve's interest rate hikes. At the same time, the deteriorating geopolitical situation in the Middle East has led to fluctuations in energy prices.
(Central News Agency, Washington, 24th, comprehensive foreign news reports) Data show that U.S. mortgage interest rates exceeded 7.0% today, setting a new high since Trump returned to the presidency. Mortgage affordability has also come into focus as voters face high living costs ahead of the midterm elections.
Agence France-Presse reported that the average 30-year fixed mortgage rate in the United States as of today was 7.03%, significantly higher than the 6.30% during the same period last year.
According to data from the Federal Home Loan Mortgage Corporation (Freddie Mac), this is the highest average level since January 16 last year.
With only a few weeks left before the November midterm elections, housing affordability has become a major issue for American voters.
After the United States and Israel jointly launched an attack on Iran at the end of February this year, a war in the Middle East was triggered. Iran blocked the Strait of Hormuz, an important energy transportation channel, in response, causing fuel prices to rise sharply.
Prices of regular gasoline, which American households are highly dependent on, and diesel fuel, which farmers and trucking operators need, have soared, adding to pressure on consumers and businesses.
In response to rising inflation, the U.S. Federal Reserve (Fed) raised interest rates this month for the first time since 2023 in an attempt to curb rising prices.
Prior to this, the continued high mortgage interest rates after the COVID-19 (coronavirus disease 2019) epidemic had already put pressure on the U.S. housing market.
Mortgage interest rates have risen further this week, which is expected to increase the burden on people preparing to buy homes.
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The U.S. Department of Commerce also released another report today showing that new home sales increased by 6.4% monthly in August, and after seasonality adjustment, the annual rate of new home sales reached 684,000 units.
However, although sales increased in August from the previous month, they were still down 2.0% compared to August 2025. (Compiled by: Xu Ruicheng) 1150925
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What to Watch
AI outlook — possibilities, not facts
The U.S. Federal Reserve will maintain high interest rates in the coming months to curb inflation
Likely · Within months
If the blockade of the Strait of Hormuz continues, global oil prices will rise further
Possible · Within weeks
Open Questions
- Will the Federal Reserve continue to raise interest rates in future meetings?
- How long will the Strait of Hormuz blockade last? What is the long-term impact on global oil prices?
- Will the U.S. housing market cool further due to high interest rates?
