Borrowers are facing mortgage rates nearly a point higher than a year ago as the costs of borrowing creep higher.
It isn’t only governments like those of the United States and France that must pay more to borrow; prospective homeowners seeking 30-year mortgages are paying an average of 7.28%, according to Freddie Mac, up from 6.3% a year ago.
In the face of rising rates, the number of mortgage applications for new purchases is falling. The MBA Mortgage Applications Purchase Index has fallen to 145 after reaching as high as 194 at the beginning of 2026.
Action Line: With both the government and big tech firms borrowing money, and inflation fears adding risk for lenders, homebuyers looking for mortgages are facing an uphill battle. Your Survival Guy will be watching rates. Click here to subscribe to my free monthly Survive & Thrive letter.
