Mortgage rates rise to 7.04% after U.S. credit downgrade, impacting housing market

From CNBC: 2025-05-19 13:50:00

Mortgage rates spiked after Moody’s downgraded the U.S. credit rating, with the average rate on a 30-year fixed loan hitting 7.04%, the highest since April 11. Bond yields rose, influencing mortgage rates. The surge in rates in April led to a drop in pending home sales and homebuilder sentiment, impacting the housing market. Despite a slight uptick in mortgage demand in May, rates above 7% are causing a slowdown in buyer activity.



Read more at CNBC: Mortgage rates cross back over 7% after U.S. credit downgrade