The 30-year fixed mortgage rate has topped 7% for the first time since May 2025, prolonging a months-long trend eroding US home sales.

US mortgage applications fell 2.7% as 30-year fixed rates climbed to 6.85%, nearing 7%. Freddie Mac reports the highest rate since July 2025.

US existing home sales dropped to 3.98M in August, down 2% from July, as elevated mortgage rates weigh on buyers despite rising inventory and