Mortgage rates jump to the highest level of 2026

US mortgage rates have climbed back toward 7%, reaching their highest levels in nearly a year. This increase delivers a fresh blow to the housing market by straining affordability and stifling home sales. While these shifting market dynamics benefit rental demand and cash buyers, they significantly hinder first-time buyers. The rise in rates represents the highest level seen in 2026, creating new challenges for those seeking home ownership in the current economic climate.