Mortgage rates are inching back toward 7%, highlighting the ongoing strain on US home buyers. The average rate on a standard, 30-year fixed mortgage was 6.86% in the week ending May 22, the highest level since mid-February, according to data released Thursday from Freddie Mac.

Fannie and Freddie were once private companies. As the subprime bubble inflated in the early 2000s, they lowered their underwriting standards to remain competitive. When the bubble burst in 2008, touching off the financial crisis, the two enterprises were rushed into government control.

The bond market is scheduled to close 3 hour earlier than normal today--a common practice surrounding federal holiday weekends. This means 3 fewer hours where trading volatility can have an impact on mortgage rate movement.

Early forecasts called for a gradual decline in mortgage rates (potentially reaching 6% by the end of 2025), but concerns over a potential recession and uncertain trade policies h

Any adverse reaction from this event may lead mortgage rates toward 7.25% or higher, which would be the year-to-date high in 2025.

Experts fear that the move, though it could help the government's budget woes, could disrupt the fragile U.S. mortgage market.

The decidedly unsexy bond market is usually pretty quiet. But when they want to, bond investors can send a loud, clear message to Washington. They did just that Wednesday and Thursday.

Mortgage rates are once again above 7% according to a daily index that cites concerns over spending in President Donald Trump's 'big, beautiful bill'

Mortgage rates ultimately managed to hold steady on Tuesday despite some underlying market volatility. Rates change day to day (and sometimes intraday) based on movement in the bond market, and there's been plenty of that.

Generally, it’s a great thing for the country not to go into a recession, but a strong economy is bad for mortgage rates.