US 30-year mortgage rates top 7%, highest in Trump presidency

US mortgage rates have surpassed the 7 percent mark, reaching their highest level since Donald Trump took office again, according to data released on Thursday. This surge is causing significant concern among American voters as they face rising costs of living ahead of the mid-term elections in November. The 30-year fixed-rate mortgage averaged 7.03 percent on Thursday, a notable increase from 6.30 percent in the same period last year. This marks the highest average level since January 16, 2024.

The affordability of homes has become a major issue for voters, especially with the ongoing war in the Middle East. The conflict, which began after US-Israeli strikes on Iran in late February, has led to a surge in fuel prices as Iran retaliated by blocking a critical waterway for energy transit. The increased costs of regular petrol and diesel, essential for farmers and truckers, are putting pressure on consumers and businesses across the country. Higher diesel costs are expected to further impact the world's largest economy.

In response to rising inflation, the US central bank raised interest rates for the first time since 2023 this month. The recent increase in mortgage rates, following the Covid-19 pandemic, has further strained the US housing market. Despite a 6.4 percent rise in new home sales in August, as reported by the Commerce Department, the rate remains 2.0 percent below August 2025. The ongoing situation is set to affect prospective homebuyers, exacerbating their financial challenges.