The 30-year fixed rate mortgage topped 7% for the first time since last May, although late in the week, the 10-year Treasury peaked before reversing course.

Shares of Fannie Mae and Freddie Mac fell Monday after Keefe, Bruyette & Woods analysts downgraded the stocks to Underperform. Here's a look at the latest developments for the mortgage giants:

The average rate on 30-year fixed-rate mortgages surpassed 7 percent for the first time since May, Freddie Mac reported on Thursday, extending a weekslong climb that could push more buyers and sellers to the sidelines.

Freddie Mac's (FMCC) total mortgage portfolio rose at an annualized rate of 4.8% to $3.58T in December, it disclosed on Monday, accelerating from November's 2.4% increase.

The federal funds rate and mortgage interest rates are often expected to move together, but they haven’t lately. Here’s why.

Mortgage rates topped 7% this week, a key psychological threshold, in a sign of the US housing market’s unrelenting affordability challenges. The average rate on a standard, 30-year fixed mortgage was 7.

“Mortgage rates ticked up for the fifth consecutive week and crossed 7% for the first time since May of 2024,” says Sam Khater, Freddie Mac’s chief economist. “The underlying strength of the economy is contributing to this increase in rates."

AM Durable Goods Durable Goods Orders measure the change in the total value of new orders for long-lasting manufactured goods, including transportation items. Durable goods orders are expected to rise 0.

The average rate on a 30-year fixed mortgage reached 7.04% for the week ending January 16 — the highest level since May.

These are today's mortgage and refinance rates. Mortgage rates are likely to remain elevated until inflation comes down further.

In December, economists believe the overall PCE index rose 0.3% on a monthly basis and 2.6% on an annual basis, according to FactSet’s consensus estimates. They anticipate that the core measure of PCE inflation, which excludes volatile food and energy prices, rose 0.2% on a monthly basis and 2.8% over the past year.

Many economists have felt relief over continued GDP growth. But ongoing data releases suggest that the foundation of the economy — consumer spending — isn’t sustainable.