{
  "id": 13128076,
  "title": "Mortgages Hit 3-Year High: How Payments Have Risen Under Trump",
  "url": "https://urgent.news/2026/10/09/mortgages-hit-3-year-high-how-payments-have-risen-under-trump",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-09T13:22:24.000Z",
  "source": {
    "name": "Newsweek",
    "slug": "newsweek",
    "url": "https://www.newsweek.com/mortgages-hit-3-year-high-how-payments-have-risen-under-trump-12545610"
  },
  "original_language": "en",
  "account": "Mortgage rates in the United States have reached their highest point in nearly three years, intensifying affordability challenges for homebuyers as the cost of living becomes a crucial issue in the upcoming midterm elections. According to Freddie Mac, the average interest rate on a 30-year fixed-rate mortgage surged to 7.40 percent for the week ending October 8, marking the seventh consecutive weekly rise. This upward trend follows a 7.28 percent rate the week prior and significantly exceeds the 6.30 percent rate from a year ago. Realtor.com senior economist Joel Berner noted that these soaring mortgage rates are causing alarm within the housing market.\n\nThe escalation in mortgage rates stems from inflation worries, a global bond market sell-off, and concerns about increasing government deficits. Federal Reserve officials have suggested that additional interest rate hikes may be required to curb inflation. Newsweek reached out to the National Association of Realtors for comment on this matter.\n\nFor American homebuyers, these rising borrowing costs present an additional hurdle in a market already difficult due to high property prices. The average 30-year fixed mortgage rate when President Trump assumed office in January 2025 was 6.91 percent. As of September 2026, the median price of a U.S. home was $419,250, based on Federal Reserve and Realtor.com data. Assuming a buyer is purchasing such a home with a 20 percent down payment, they are currently paying an average of $246 more per month, or roughly $2,954 more annually, compared to the previous year. Consequently, this translates to an additional $111 per month, or around $1,333 per year, in principal and interest on their mortgage, given the same home price and down payment.\n\nHigher mortgage rates mean buyers must pay more to finance the same property, even when its price remains constant. This increase can push monthly payments beyond what many households can comfortably afford, compelling prospective buyers to consider less expensive homes or postpone their purchase. Mortgage rates are influenced by various factors, including long-term Treasury yields and inflation expectations. While these rates do not move in sync with the Federal Reserve's benchmark rate, anticipations of tighter monetary policy can exert additional pressure on borrowing costs.\n\nThe housing market has already exhibited signs of strain. Pending home sales declined year over year in August and September, and some sellers have had to lower their asking prices to attract buyers, as reported by Realtor.com. Although increased housing inventory and reduced prices might provide buyers with more negotiating power, those advantages can be offset by higher financing costs. Higher rates can also dissuade existing homeowners from selling, as those with mortgages at considerably lower rates may be hesitant to move if it means taking on a more expensive loan. This reluctance could limit the supply of properties available to buyers.\n\nThe mortgage rate increase comes at a time when affordability concerns are weighing on the political landscape ahead of the November 3 midterm elections. A Reuters/Ipsos poll from October 8 found that the cost of living was the top issue on Americans' minds when considering how to vote, ahead of democratic values and immigration. The poll also highlighted a stark difference in enthusiasm between supporters of President Donald Trump and those backing former Vice President Kamala Harris in the 2024 election. Sixty-eight percent of Harris voters expressed very strong intentions to vote in November, compared to just 30 percent of Trump voters. Trump's approval rating had dropped to 32 percent, marking a record low previously recorded in September, as per Reuters.\n\nWhile mortgage rates are influenced by bond markets, inflation expectations, and Federal Reserve policy rather than presidential decisions alone, housing affordability remains part of the broader economic picture that voters may use to evaluate the administration. The near-term outlook for mortgage rates remains uncertain, with persistent inflation concerns and rising Treasury yields pushing borrowing costs higher. The possibility of further monetary tightening could add to the pressure. Buyers hoping for lower rates may face a challenging decision between purchasing now and waiting for more favorable financing conditions. However, future rates are not guaranteed to decline, and home prices may also fluctuate.\n\nFor now, the latest rise in mortgage rates adds another challenge for Americans attempting to enter the housing market. With affordability as a leading concern for voters, the cost of homeownership could remain a significant issue as Americans head to the polls in November.",
  "summary": "The average rate on a 30-year fixed-rate mortgage reached 7.40 percent for the week ending October 8, according to Freddie Mac.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}