US mortgage rate tops 7% as soaring bond yields flash warning signs not seen in decades

From the Newshound archive · first published 26 September 2026 · last updated 27 September 2026.

American homebuyers are now facing mortgage rates above 7% as bond yields surge to levels unseen since before the 2008 financial crash, with investors warning the red-hot US economy shows no signs of cooling. The US 10-year Treasury yield is sitting close to 5%, while the 30-year yield has reached a peak not seen for nearly two decades. The IMF has warned governments worldwide to cut borrowing as spiralling interest costs pile new pressure on households and investors alike.

UK 30-year gilts have climbed back to where they stood in 1998, and Germany and Japan face similarly historic yield spikes.