Mortgage rates hit 7% for the first time since January 2025

 Mortgage rates hit 7% for the first time since January 2025. Abstaining from avocado toast probably won’t be enough to help you buy a house: The average 30-year fixed-rate mortgage jumped to 7.03% on Thursday, Freddie Mac said yesterday. That’s up from 6.3% a year ago and represents the first time mortgages have breached the psychologically significant 7% mark in 20 months. That’s likely to hit the already stagnant housing market hard. With inflation remaining elevated and the war in Iran driving up oil prices, the bond market—which mortgage rates tend to follow—has seen large yield spikes. The 10-year bond, which is closely tied to consumer borrowing costs like mortgages, leaped above 5%, and yesterday the 30-year bond had its highest yield since 2004.