U.S. mortgage rates exceed 7%, reaching a new high for 2025

The 30-year fixed mortgage rate in the United States reached 7.22% on September 15, the highest since January 2025. Rising U.S. Treasury yields have led to increased lending costs for banks, and the market is betting that the Federal Reserve is likely to raise interest rates.

According to data from the National Association of Realtors, existing home sales in August fell by 2% month-over-month, annualized at 3.98 million units, the lowest since June of last year. High mortgage rates have exacerbated the sluggishness in the real estate market, leading to increased hesitation among homebuyers and squeezing builders' profits.