US 30-year mortgage rates surge to 7%! The housing market crisis intensifies.

The US housing market is facing severe interest rate pressures.

According to Mortgage News Daily, the average interest rate for a 30-year fixed mortgage in the United States rose to 7.24% on September 16, a significant increase of 27 basis points from 6.97% a week earlier. On September 17, the rate fell slightly to 7.19%, but remained significantly above the 7% mark.

Meanwhile, Freddie Mac reported on Thursday that the average interest rate for a 30-year fixed mortgage in the U.S. rose to 6.95% in the week ending September 17, up 19 basis points from the previous week’s 6.76%, marking the highest level since January 2025.

Freddie Mac releases survey data on a weekly basis, while Mortgage News Daily is closer to actual daily transactions; the two differ in sampling frequency and timeliness.

Analysis indicates that mortgage rates of around 7% have significantly eroded housing affordability; in July, housing costs in the United States accounted for 44% of the typical household income, significantly higher than the generally accepted affordability level of 30%.

According to a previous article by Wall Street Insights, U.S. existing home sales fell 2% month-over-month in August, the lowest in more than a year, while the inventory turnover period hit a ten-year high.

Long-term US Treasury yields remain a key variable.

US mortgage rates are closely linked to long-term US Treasury yields.

The Federal Reserve raised its benchmark interest rate by 25 basis points on Wednesday, the first rate hike since July 2023. U.S. Treasury yields fell slightly on Thursday compared to Wednesday but remained high; as of this writing, the 10-year Treasury yield was 4.94%, and the 30-year Treasury yield was 5.29%.

The US federal debt has surpassed $40 trillion, AI capital expenditures are driving large-scale corporate bond issuance and creating competition for funds, and high oil prices are pushing up expectations of higher and longer inflation—these structural factors are collectively pushing up long-term interest rates.

On the one hand, the pressure of monthly mortgage payments directly weakens the willingness to buy a house; on the other hand, existing homeowners who refinanced their properties several years ago at less than half the current interest rate are facing the dilemma of "losing the low-interest loan if they sell their houses" and tend to remain inactive.

Currently, US housing prices remain high and mortgage rates are high. Existing homeowners face the dilemma of "losing low-interest loans if they sell their homes," resulting in a weak willingness to sell. The housing market is facing the dual pressure of "unaffordable housing and unsellable housing."

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