Mortgage Rates Hit 7.28% After Trump Suggested 3% Rate Goal
- 1, 2026, remaining well above 7% nearly two years after President Donald Trump suggested borrowing costs could fall to 3% or lower.
- The benchmark 30-year fixed-rate mortgage increased to 7.28% at the start of October, according to Freddie Mac data.
- We're going to get them back down to, we think, 3%, maybe even lower than that.
Mortgage rates reached 7.28% as of Oct. 1, 2026, remaining well above 7% nearly two years after President Donald Trump suggested borrowing costs could fall to 3% or lower. Freddie Mac reported that its Primary Mortgage Market Survey showed the average 30-year fixed-rate mortgage rose from 7.03% a week earlier and 6.34% a year ago, marking the highest rate recorded since Trump took office on Jan. 20, 2025.
Freddie Mac Survey Shows Rates Climbing Past Seven Percent
The benchmark 30-year fixed-rate mortgage increased to 7.28% at the start of October, according to Freddie Mac data. That figure continues a sustained period of elevated borrowing costs that have persisted despite earlier political projections. When Trump discussed housing affordability and interest rates during a Sept. 5, 2024 appearance at the Economic Club of New York, he stated that his administration would reduce mortgage rates back down to 3%, or potentially lower.
Reducing mortgage rates is a big factor. We’re going to get them back down to, we think, 3%, maybe even lower than that.
Donald Trump
At the time, Trump argued that lower rates would expand housing access and help younger Americans purchase homes. Nearly two years after those remarks, the latest Freddie Mac survey places rates more than four percentage points above that threshold.
Washington Officials and Policy Analysts Clash Over Economic Pressures
The persistent elevation of borrowing costs has drawn sharp criticism from lawmakers and economic observers. Sen. Mark Warner took to social media to condemn the trajectory of the housing market under current economic conditions. Another devastating effect of Trump’s economy: skyrocketing mortgage rates… as if it wasn’t already hard enough to buy a home,
Warner said in a post on X on Oct. 1, 2026.
Marc Goldwein, senior vice president and senior policy director at the Committee for a Responsible Federal Budget, also responded to the resurrected 2024 comments on social media. I would be extremely concerned right now if you told me mortgage rates were headed to 3%,
Goldwein wrote on X on Oct. 1, 2026, pointing to the macroeconomic risks associated with forced rate reductions.
Housing Market Strains and Builder Adjustments Shape Consumer Choices
The prolonged high-rate environment has forced homebuilders to deploy aggressive sales incentives and pricing strategies to maintain buyer demand. Lennar Corp. reported an average sales incentive rate of about 12% in the third quarter, while KB Home utilized community-level price adjustments and built-to-order models. Builders are also leaning heavily on mortgage-rate buydowns, seller concessions, and specialized products designed to assist lower-income buyers.
Looking at broader macroeconomic scenarios, Cotality Chief Economist Selma Hepp stated that mortgage rates could potentially climb to 9% in a severe scenario if Treasury yields rise toward 6% to 7%, though she noted that outcome is not her base case. Under existing bond-market conditions, Hepp expects rates to hover around 7% for the foreseeable future. Meanwhile, Freddie Mac Chief Economist Sam Khater maintained a steady outlook, stating that the housing market continues to find support from favorable economic conditions despite the upward trajectory of borrowing costs.
Mortgage Rates May Stay Above 7 Percent
It remains unclear how long 30-year fixed mortgages will sustain levels above 7% or whether bond-market shifts will push yields higher toward the severe scenarios outlined by housing economists.