US mortgage rates top 7% for first time in 20 months

Increase comes after Fed decision to raise interest rates, as Americans struggle with high prices and stagnant wages

US mortgage rates surpassed 7% for the first time since January 2025, according to federal lender Freddie Mac, aggravating a housing market that has endured years of high interest rates and low supply.

The increase comes after the US Federal Reserve hiked interest rates, which directly affect mortgage rates, for the first time since 2023, citing high inflation.