How rising mortgage rates are hitting the housing market hard

How rising mortgage rates are hitting the housing market hard

Rising mortgage rates are lowering the odds of prospective homebuyers entering the market and adding to the tough economic slate for President Trump and the GOP ahead of the midterms.

The average 30-year fixed mortgage rate was 7.28 percent last week, the highest mark since late November 2023, according to data from Freddie Mac. The average rate also rose by a quarter point from the week prior, the largest week-to-week increase in four-plus years.

Rising mortgage rates are part of a rough financial ledger for Trump and Republicans, as inflation remains above 3 percent and fuel prices stay elevated amid the Iran war.

“Economy, cost of living, that kind of congealing will be [important], certainly it has been for the last … two years, for voters in ‘26,” GOP strategist Matt Gorman told The Hill.

Experts point to multiple factors for why mortgage rates have shot up above 7 percent. Lawrence Yun , the chief economist at the National Association of Realtors (NAR), noted increased energy prices during the Iran conflict have pushed inflation up.

Annual inflation, as measured by the personal consumption expenditures price index, has increased from 2.8 percent in February to 3.4 percent in August , according to data from the Bureau of Economic Analysis.

Read the full report at TheHill.com tomorrow .

Welcome to The Hill’s Business & Economy newsletter , I’m Max Rego — covering the intersection of Wall Street and Pennsylvania Avenue.

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Business and economic news we’ve flagged from other outlets:

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Opinions related to business and economic issues submitted to The Hill:

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