Market Stats
Mortgage Rates Hit 7%
By David Golovin · September 25, 2026 · 2 min read
The 30-year fixed rate crossed 7% this week for the first time in 20 months. On a $350,000 loan that adds roughly $860 a month compared to rates available on assumable FHA and VA loans.
| Loan | Rate | Est. payment |
|---|---|---|
| Assumed loan (avg on Roots) | 4.51% | $1,530 |
| 30-year fixed (today) | 7.03% | $2,390 |
| Difference | +2.52 pts | -$860/mo |
Payment estimates based on $350,000 loan balance. Source: Freddie Mac PMMS.
What is pushing rates above 7%?
The Fed raised rates on September 16 and signaled at least one more hike. The 10-year Treasury yield, which mortgage rates track closely, climbed above 5% this week.
Source: Freddie Mac Primary Mortgage Market Survey
How some buyers get a lower rate now
FHA and VA loans originated before 2023 are assumable. Roots shows 17,655 active assumable listings with an estimated average rate of 4.51% and a lowest rate of 1.75%.
FAQ
What happens to home prices when mortgage rates hit 7 percent?
Higher rates reduce buyer purchasing power, which typically softens demand. Home prices have risen just 2% year-over-year as of mid-2026, the slowest pace in years, though a tight supply in many markets is preventing larger declines.
How much more do you pay at 7% vs 4%?
On a $350,000 loan, a 7% rate costs roughly $860 more per month than a 4% rate. Over 30 years that is more than $300,000 in additional interest.
Can you still buy a house when rates are at 7 percent?
Yes. Some buyers use adjustable-rate mortgages, negotiate seller concessions, or assume an existing FHA or VA loan with a below-market rate. Roots lists over 17,000 active assumable homes with an estimated average rate of 4.51%.