US Mortgage Rates Cross 7% as Home Sales Fall
The 30-year fixed mortgage rate crossed 7% this week. This is the first time in over a year.
Reports from CNBC and MarketWatch confirmed the rise. The war in Iran helped push rates higher.
Home sales fell for the third month in a row. Sales dropped 2% in August from July.
That is an adjusted yearly rate of 3.98 million homes. This was the slowest pace in more than a year.
Sales were also 1.2% below August 2025. The median home price rose to $429,100.
That is up 1.6% from a year earlier. Home inventory reached a 4.9-month supply.
This gives buyers more homes to choose from. Still higher rates and prices reduced buyer activity.
Reports say 42.1% of homes had price cuts. This suggests the housing market is becoming more balanced.
Klear Note — A mortgage rate is the yearly interest charged on a home loan. When rates rise, buyers usually face higher monthly payments, reducing demand.
Key Terms 3
- 30-year fixed mortgage rate A home loan interest rate that stays the same for 30 years.
- inventory The number of homes currently for sale.
- median home price The middle price point among all homes sold.