US housing costs hit 6.95% mortgage rate, squeezing battleground voters

September 20, 2026 at 06:30 PM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

Freddie Mac reported Thursday that 30-year mortgage rates climbed to 6.95%, the highest since January 2025. The Federal Reserve's first rate hike in three years dashed hopes for cheaper borrowing. The surge leaves 49% of US metro areas requiring $100,000 household income for a median-priced home, up from 6% in 2019.

Key Facts

Freddie Mac reported 30-year mortgage rates at 6.95% on Thursday, the highest since January 2025.
The Federal Reserve raised interest rates for the first time in three years.
49% of US metro areas now require a $100,000 household income to qualify for a mortgage on a median-priced home, up from 6% in 2019.
The 10-year Treasury yield is hovering near its highest level since 2007.
Builder confidence has fallen to match the lowest level since late 2022.

Mortgage Rate Surge

Freddie Mac reported Thursday that 30-year mortgage rates climbed to 6.95%, the highest since January 2025. The Federal Reserve raised interest rates for the first time in three years, crushing hopes that borrowing costs will come down soon. The 10-year Treasury yield, which mortgage rates closely track, is hovering around its highest since 2007.

Affordability Crisis

Nationwide, 49% of US metropolitan areas tracked by the National Association of Realtors now require a household income of $100,000 to qualify for a mortgage on a median-priced home, assuming a 10% down payment. That is up from just 6% of US metro areas in 2019 and includes cities in political battlegrounds like Columbus, Ohio; Dallas-Fort Worth-Arlington, Texas; and Lancaster, Pennsylvania. In 2025, the real median household income in the US was $87,460.

Political Fallout

For Trump — who promised on his first day back in office to lower housing costs — the inability to provide relief is boosting chances that Democrats take the House and, possibly, the Senate in November. "Making Housing Affordable Again" is still listed as the top accomplishment of Trump's Department of Housing and Urban Development, but that's not how it feels to many in the housing market, or their employers. Andrew Volk, who owns the Hunt & Alpine bar in Portland, Maine, a top election battleground, said whenever one of his staff members is looking for housing, it can be very tough to find something.