Homeownership Drifts Further Out of Reach as Mortgage Rates Rise

In late February, would-be home buyers and sellers rejoiced.

For the first time in more than three years, the average interest on a 30-year fixed-rate mortgage had dropped below 6 percent. Finally, it seemed, the languid housing market might perk up.

That glimmer of hope has flamed out.

Mortgage rates have rocketed back up, hovering at 7.4 percent as of Thursday. And it appears unlikely that rates will decline significantly anytime soon. Mortgage rates are tied to the yield on the 10-year Treasury note, which has soared because of concerns about persistent inflation, ballooning national debt and optimism around growth driven by artificial intelligence.

“Unless you get a recession, it’s really hard to bring down rates,” said Josh Hirt, an economist at Vanguard.

The surge in mortgage rates could further depress housing activity and plunge the country deeper into a housing crisis. The United States had 3.7 million fewer homes than it needed in late 2024, according to Freddie Mac.

Article source: https://www.nytimes.com/2026/10/15/business/economy/housing-market-mortgage-rates.html