Mortgage rates jump to two-year high, approach 7.5%

KTUL OK ^

[LouAvul]

Mortgage rates rose this week, with the 30-year fixed rate averaging 7.38%, up from 7.08% last week, according to Bankrate’s latest lender survey. That was the highest level since May 2024.

The national median family income for 2026 is $106,800, according to the U.S. Department of Housing and Urban Development, and the median price of an existing home sold in August 2026 was $429,100, according to the National Association of Realtors. Based on a 20% down payment and a 7.38% mortgage rate, the monthly principal and interest payment of $2,372 amounts to about 27% of the typical family’s monthly income.

Meanwhile, home prices are still rising — the National Association of Realtors reports the median home price was up 1.6% over the past year, and the median of $429,100 was an all-time high for the month of August. However, values have begun to dip in many formerly hot markets. Still, signs are mixed. The S&P Cotality Case-Shiller index released in late September showed national home prices grew 1.9% in the year ending in July, marking an acceleration.

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TOPICS: Business/Economy; Miscellaneous; News/Current Events
KEYWORDS:

[LouAvul]

I bought my first home during the travesty that was the Jimmy Carter presidency. My interest was >14%, and I was glad to get that. Just saying.

[Alberta's Child]

True, but when it comes to affordability there is a huge difference between a 15% mortgage on a $90,000 home and a 7.5% mortgage on a $450,000 “starter home.”

[rktman]

We luckily refi’d a few years back and have a 2.87%. Could work if we want to sell. Cash and assume the existing mtg could appeal to someone. But, I don’t want to pack up any more. 🤔😂👍

[ClearCase_guy]

the monthly principal and interest payment of $2,372 amounts to about 27% of the typical family’s monthly income.

Typical family income is over $113K a year? I think median family income is actually closer to $87K.

[napscoordinator]

And we kept him to the car by not relocating him. We should do that with all the people in Congress right now. Maybe we’ll be lucky next Tuesday and all the useless politicians will be voted out.

[Recompennation]

The good news is that we can pay all these (higher)
inflated prices with the magical biden bucks that created this debacle in the first place.
Our currency is ruined is what you should take from this not what the deep state crooked DC swamp along with their pocket fake news wants you to.
And that is orange man bad/ TDS and their come help steal another election at the cost of the same tactics sinking and crash 2008 style tanking of our economy.

[Dilbert San Diego]

I like to pose the rhetorical question to people — could you afford to buy your own house at today’s prices? And today’s interest rates?

I could not afford to buy the house I’ve lived in for 35 years, if I had to buy at today’s price. My house has skyrocketed in value in these years. And my income in nominal dollars has substantially increased over the decades. But the income has not kept pace, with the escalating cost of housing. That’s the housing affordability problem so many people are facing today.

[Dilbert San Diego]

I like to pose the rhetorical question to people — could you afford to buy your own house at today’s prices? And today’s interest rates?

I could not afford to buy the house I’ve lived in for 35 years, if I had to buy at today’s price. My house has skyrocketed in value in these years. And my income in nominal dollars has substantially increased over the decades. But the income has not kept pace, with the escalating cost of housing. That’s the housing affordability problem so many people are facing today.

[nwrep]

I don’t know anyone who makes less than $100k. Even cops and janitors.

[larryjohnson]

My first house was 7.5 % 35,000 VA loan no down payment 1970. That was. Manhattan Bch, ca. after two moves I sold at 700 k and left the state.1994.i held on to 500k capital gains.

[larryjohnson]

My first house was 7.5 % 35,000 VA loan no down payment 1970. That was. Manhattan Bch, ca. after two moves I sold at 700 k and left the state.1994.i held on to 500k capital gains.

[ClearCase_guy]

The median household income in the United States for 2026 is projected to be around $83,730.

That means half of all households make less than $87,730. I’m glad every individual you know makes over $100,000 but you need to realize that this makes you and your friends special.

[Brian Griffin]

$90,000 home

$450,000 “starter home.”

There’s been a lot of inflation on lots of important things- up about five-fold

My mom paid $225 in property tax back then.

She left some SE tax info. I think the cutoff was ~$25,000 in income.

[bobbo666]

Supply&Demand. When there is an excess of “buyers” everything goes up.

Unaffordability is driven entirely by the 20M illegal aliens BeijingBiden imported in order to corrupt elections via mailin ballots. Those extra ....... “occupants” use Fed $$ to jack up prices. Get rid of them and all prices crash within weeks.

As to the GooberPres, he was an arsehole in every way. Everything he touched went to shitte.

[rollo tomasi]

"My interest was >14%"

Ok, now do price of home, salary/wages, rent at that time to save on a down payment while comparing income growth to today, cost of necessities (Food, utilities etc...).

In Carter's day price‑to‑income ratio was a lot lower, land scarcity wasn't an issue, zoning laws were not as strict, and investor demand did not interrupt supply chains making materials cost a lot less as one example.

The BS about Carter being worse now with high interests is just that, BS.

[EVO X]

$450,000 “starter home.”

In my flyover metro area, $450K wouldn't be considered as a starter home. Maybe $200k if you are on the right side of the railroad tracks.

[Paladin2]

“Wage” levels have changed over the last decades too.

[TomGuy]

Historically -- normal.

The historical average for mortage rates is about 7.7%

Too many, especially BIG-SPENDING GOVERNMENT, got too used to the cheap money of the last 20 year.

• 2000–2003 (Dot-Com Bust & Post-9/11): The federal funds rate started at 6.50% in 2000. The Federal Reserve cut rates down to a low of 1.00% by 2003 to support the economy.

• 2004–2006 (Housing Boom): The Fed raised rates steadily, peaking at a target range around 5.25% in 2006.

• 2007–2008 (Global Financial Crisis): As the housing market crashed, the Fed slashed rates rapidly down to near-zero (0.25%) by late 2008.

https://tradingeconomics.com/united-states/interest-rate

[TomGuy]

The median household income in the United States for 2026 is projected to be around $83,730.

That doesn't even buy a gutted fixer-upper in my area (NW Arkansas):

Median listing home price: $329k

[Bon of Babble]

No, I could not afford the home I live in - and neither can just about anyone else - b/c where I live in California, the developers swoop in on any given single family home, divide up the lot and drop two or three ADUs on the property - legal in California b/c of the likes of Scott Weiner who destroyed local zoning ordinances - all become rentals - expensive rentals.

These developers come in with cash in hand and offer well over what the asking price is, I’ve seen it all over my own neighborhood and suspect it is going on all over California, effectively out bidding and locking out first time home buyers, except a very few, lucky enough with A LOT of cash, what is needed is to counter the large property developers.