U.S. 30-Year Mortgage Rates Surge to 7.02%

Mortgage rates in the United States have surged, with the average rate for a 30-year, fixed-rate mortgage exceeding 7% for the first time since last May. This increase follows a period of volatility, where rates had previously dropped by nearly a quarter of a percentage point over two weeks before rebounding to the 7% mark. The latest data shows that the average rate for a 30-year fixed-rate mortgage now stands at 7.02%, up from the previous week's average of 6.87%.

The rise in mortgage rates is not confined to fixed-rate mortgages. The average rate for 5-year adjustable-rate mortgages has also increased, currently at 7.83%. This trend mirrors a broader pattern of rising interest rates, which have been fluctuating around the 7% level for some time. Despite occasional decreases, rates have consistently returned to this threshold, indicating sustained upward pressure on borrowing costs.

Refinance rates have also been impacted by this trend. The average rate for a 10-year fixed refinance loan is currently 6.15%, down 4 basis points from the previous week. However, this minor decrease in refinance rates does not counteract the overall increase in mortgage rates, which continues to affect the housing market.

Experts have observed that while mortgage rates began to decline again in mid-January 2025, the decrease has not been substantial. According to analysts' forecasts, rates are not expected to drop significantly in the near future, indicating that borrowers may continue to face higher costs for mortgages and refinancing. This outlook highlights the challenges faced by potential homebuyers and those seeking to refinance their existing mortgages in the current economic climate.