Massachusetts Mortgage Rates Hit 7.3%, Adding $1,000 to Boston-Area Monthly Payments
Updated
Updated · The Boston Globe · Oct 5
Massachusetts Mortgage Rates Hit 7.3%, Adding $1,000 to Boston-Area Monthly Payments
2 articles · Updated · The Boston Globe · Oct 5
Summary
Freddie Mac’s 30-year fixed rate reached 7.28% last week, the highest since 2023, sharply worsening affordability for Massachusetts buyers and stalling sales that had shown brief signs of life earlier this year.
Bond yields climbed as persistent inflation, fuel-price volatility tied to the Iran war, and rising US debt pushed investors to demand higher returns, feeding directly into mortgage costs.
Greater Boston buyers now face roughly $1,000 more a month than they would have at 6%, with the payment on a median-priced home rising from about $4,137 in February to $5,168 in September.
Worcester seller Caitlin Fontecchio cut her 2,500-square-foot home below $450,000 after two open houses drew no buyers, jeopardizing her family’s planned purchase of a new $500,000-plus home in Warren.
The rate shock is freezing a market already strained by years of underbuilding and prices up more than 50% since 2016, leaving middle-income buyers sidelined while higher-end homes remain more resilient.