US Housing Costs Rise Further Out of Reach Ahead of Midterms
Mortgage rates are nearing 7% after climbing for four consecutive weeks, reaching their highest level since the Trump administration. High prices and soaring rates are making homeownership less accessible for buyers, with some in the Twin Cities already retreating from the market. This trend follows a key rate hike by the Federal Reserve. While some homebuyers are seeking methods to reduce monthly payments, others express despondency as housing costs rise alongside general inflation in the weeks preceding the midterm elections.
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- ✓ Mortgage rates have increased for four consecutive weeks.
- ✓ Mortgage rates are nearing 7%.
- ✓ The Federal Reserve hiked a key rate, contributing to rising affordability concerns.
- ✓ Housing costs and mortgage rates are rising ahead of the midterm elections.
What changed
Mortgage rates have risen for a fourth straight week to reach a peak not seen since the Trump presidency.
Live updates
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US Mortgage Rates Hit Highest Level Since Trump Administration
Mortgage rates are nearing 7% after climbing for four consecutive weeks, reaching their highest level since the Trump administration. High prices and soaring rates are making homeownership less accessible for buyers, with some in the Twin Cities already retreating from the market. This trend follows a key rate hike by the Federal Reserve. While some homebuyers are seeking methods to reduce monthly payments, others express despondency as housing costs rise alongside general inflation in the weeks preceding the midterm elections.
Why it matters
The Federal Reserve's decision to hike key rates has directly contributed to the surge in borrowing costs. This financial pressure coincides with a period of broad price increases across various goods and services. The timing is significant as these affordability concerns emerge just before the US midterm elections.
What is confirmed
- Mortgage rates have increased for four consecutive weeks.
- Mortgage rates are nearing 7%.
- The Federal Reserve hiked a key rate, contributing to rising affordability concerns.
- Housing costs and mortgage rates are rising ahead of the midterm elections.
Still unconfirmed
- The 30-year refinance rate rose 21 basis points on September 20, 2026.
- Buyers in the Twin Cities are in retreat due to rising rates.
- Mortgage rates could either rise to 8% or drop to 6%.
What to watch next
- Further Federal Reserve interest rate decisions
- Midterm election results and subsequent housing policy shifts
- Data on whether Twin Cities buyer retreat spreads to other regional markets
confidence 90%Sources used for this update (12)
- CNN — Mortgage rates climb for fourth-straight week to hit highest level since Trump took office
- NBC News — Soaring mortgage rates and high prices are putting homeownership further out of reach
- CBS News — Mortgage rates are nearing 7%. One house hunter says he's "despondent."
- startribune.com — With mortgage rates on the rise, Twin Cities buyers already in retreat
- The Seattle Times — ‘Discouraging’ or ‘medicine’? How rate hike could affect Seattle housing market
- WSJ — Weeks Before the Midterms, Almost Everything Is Getting More Expensive
- AP News — America In Focus: Affordability concerns rise as Fed hikes key rate, mortgage rate reaches nearly 7%
- Yahoo Finance — US Housing Costs Rise Further Out of Reach Ahead of Midterms
- HousingWire — Will mortgage rates rise to 8% or drop to 6%?
- Norada Real Estate Investments — Mortgage Rates Today, September 20, 2026: 30-Year Refinance Rate Rises 21 Basis Points
- 9News — Homebuyers finding ways to lower monthly payments despite higher interest rates
- www.yahoo.com — £40m unused road may open - but not for everyone
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