US Mortgage Rates Nearing 7%... Highest Since Trump Administration Took Office

U.S. mortgage rates have risen for the fourth consecutive week, surging to their highest level since the start of U.S. President Donald Trump's second term.

According to U.S. government-sponsored mortgage enterprise Freddie Mac on the 17th (local time), the average rate for a 30-year fixed-rate mortgage this week stood at 6.95%, up 0.19 percentage points from the previous week.

This marks four straight weeks of increases, with the weekly jump being the largest in 16 months.

Rates closing in on the 7% mark are also the highest since January of last year, shortly after President Trump's second term began.

While mortgage rates were on a downward trend at the beginning of the year, briefly falling below 6% for the first time in three years last February, they have continued a steep upward trajectory due to a combination of rising international oil prices triggered by the war with Iran, mounting inflation pressures, and concerns over U.S. government spending.

The 10-year U.S. Treasury yield, considered a key benchmark for U.S. mortgage rates, even broke through the psychological resistance level of 5% this week.

Consequently, for someone purchasing a typical home, the difference in total principal and interest payments between securing a 30-year mortgage at the near-6% rate seen early this year and at the current rate could amount to tens of thousands of dollars.

The U.S. Federal Reserve's decision the previous day to raise its benchmark interest rate by 0.25 percentage points to combat inflation could also act as a burden on borrowing conditions for home buyers in the short term.

However, some analysts suggest that if the Fed's rate hike successfully leads to curbing inflation, it could help lower mortgage rates in the long run.

Misha Fisher, chief economist at U.S. real estate information company Zillow, said, "Today's high benchmark rates are the necessary medicine for tomorrow's housing market recovery," adding, "As the market's confidence that inflation is under control grows, mortgage rates are likely to fall and the housing market recovery can get back on track."

(Photo: AP, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.