Mortgage rates have reached their highest level during either of President Donald Trump’s terms, adding to the strain on Americans already struggling with high prices.
The average rate on a 30-year fixed mortgage rose to 7.03% this week, up from 6.95% last week, according to CNN, which cited figures released by Freddie Mac.
The network called the development a “grim milestone” as rates have now climbed for five straight weeks, leaving buyers facing larger monthly payments.
“A move from 6 to 7 is a big change,” Columbia University finance professor Stijn Van Nieuwerburgh said in a The New York Times report on Thursday, “and it will further dampen an already weak housing market.”
The Times tied the reversal to the war with Iran. Mortgage rates briefly fell to 6% in February but began rising after U.S. and Israeli attacks on Iran on Feb. 28. Energy prices, the outlet added, have risen due to disrupted oil shipments and have only increased inflation concerns.
The jump also comes as Trump calls for lower interest rates. He said last week that U.S. rates “should be 1% or less,” CNN reported.
“There’s a psychological aspect,” Eric Orenstein, a senior director at Fitch Ratings, told the Times. “At what point do consumers just accept that rates are not going back to 3 percent?”