The rise follows the Fed’s decision to lift interest rates, while Americans contend with high prices and stagnant wages.
According to federal lender Freddie Mac, U.S. mortgage rates rose above 7% for the first time since January 2025, worsening a housing market that has faced years of elevated rates and limited supply.
The jump follows the Federal Reserve’s first interest‑rate hike since 2023, a move driven by persistent year Treasury yield reached a peak not seen since 2004, as investors priced in another Fed hike next month.
Earlier in September, Treasury Secretary Scott Bessent said the Treasury would triple its government‑debt buyback program, yet yields kept climbing.
The housing market has long been in a slowdown, said Anthony Smith, a senior economist at
The discontent is likely to surface in the November midterm elections, with Republicans fighting to keep congressional control. According to polls, nearly three‑quarters of Americans disapprove of President Trump’s economic management.
