Why 7% mortgage rates aren't the end of the world

Name: Dan Ardis
Address: Bakersfield, CA, 93314, US
Telephone: (661) 342-9381
Price range: $$$
Rating: 5

September 25, 2026 2:55Dan Ardis, NMLS# 1412272

Mortgage rates just crossed 7% for the first time since January 2025. Fed officials are talking about another hike, oil and geopolitics are rattling the bond market, and rates have climbed five weeks in a row. Here's what it means for your payment and what to do about it.

The takeaway: if you're under contract, talk to your lender about locking. If you're shopping, especially new construction, ask for a seller credit and put it toward a rate buydown. The headline rate isn't the rate you're stuck with.

Mortgage rates just crossed 7%, leaving many homebuyers wondering what comes next.

I break down why rates hit this level, what the Fed's potential hiking path means for your payment, and why the latest housing market data isn't as scary as the headlines suggest.

If you are currently shopping, learn how to use seller credits for a rate buydown to protect your budget.

Key Points from This Video

- Freddie Mac 30-year fixed at 7.03%, 15-year at 6.42%
- What the jump costs on a $400,000 loan
- Fed officials Barr, Williams, and Paulson on another rate hike
- Why the Fed Funds Rate isn't your mortgage rate
- Geopolitics, oil, and inflation risk
- New home sales hit the best pace of the year at 684,000
- Why a lower median new home price doesn't mean values are falling

Dan Ardis

Senior Mortgage Loan Originator, NMLS# 1412272

Barrett Financial Group, Bakersfield CA

Dan Ardis is a Bakersfield-based mortgage broker with 20+ years in the industry, including experience as a Senior Specialty Underwriter. He originates residential and commercial loans for Kern County clients and in 49 states through Barrett Financial Group.

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