gg2
Mortgage rates news
Archived — this story has rotated out of today’s deck. It is kept here in full.
The gist
Mortgage rates hit 6.71% this week, highest since July 2025, per Freddie Mac.
Rising rates squeeze homebuyers and block refinancing, deepening housing market slowdown.
Background
Mortgage rates have been climbing due to a global bond selloff, driven by inflation fears, increased government borrowing, and renewed hostilities in the Iran war pushing up oil prices. Federal Reserve Chairman Kevin Warsh signaled possible rate hikes, further pressuring yields. These factors have pushed rates to their highest levels in over a year, impacting the housing market.
How it unfolded
- Aug 31, 2026Average 30-year fixed rate jumped 6 basis points to 6.87%, highest since June 2025, according to Mortgage News Daily.
- Sep 2, 2026Mortgage News Daily reported average 30-year fixed rate at 6.91%, approaching 7%.
- Sep 3, 2026Freddie Mac reported average 30-year fixed rate at 6.71%, highest since July 2025. Pending home sales fell in July to weakest level since start of year.
- Sep 4, 2026Bankrate reported average 30-year fixed rate at 6.83%. Some Fed officials suggested a rate hike may not be needed, easing rates slightly.
Who’s saying what
- Analysts
- Matthew Graham of Mortgage News Daily says the rise is a 'slow grind' fueled by inflation expectations, elevated bond issuance, and economic resilience, not a sudden explosion.
- Economists
- Mark Zandi of Moody's Analytics says rates are 'effectively there' and could easily go above 7%.
- Official
- Fed Chairman Kevin Warsh emphasized the Fed's focus on reducing inflation, stating 'inflation is running above our 2% target. So the Fed's predominant focus right now should be on prices.'
- Caution
- Rebecca Kaufman of S&P Dow Jones Indices notes that high financing costs keep prospective buyers out and current homeowners reluctant to give up low rates secured in prior years.