# Mortgage rates were 7% in 1997, too—here’s why buying a home feels more expensive today

- URL: https://talkfuse.com/story/mortgage-rates-were-7-in-1997-too-heres-why-buying-a-home-feels-more-expensive-today/
- Published: 2026-11-12T15:00:01+00:00
- Updated: 2026-11-12T22:04:58+00:00
- Original publisher: CNBC (publisher lean: Centre)
- Original article: https://www.cnbc.com/make-it/2026/11/12/mortgage-rates-home-affordability-1997.html
- Topics: Business

## Key points

- Similar mortgage rates can feel very different when homes cost more.
- Inflation and borrowing needs are keeping long-term rates elevated.
- Fannie Mae expects rates to average 7.5% through 2027.

## Summary

Mortgage rates are around 7%, a level also seen in 1997, but buying a home feels more expensive today because house prices are much higher relative to incomes. The article explains that rates alone do not determine affordability: the cost of the home and the amount buyers need to borrow matter too.

Mortgage rates track 10-year US Treasury yields, which are influenced by inflation and government borrowing. After exceeding 18% in 1981, rates fell as inflation eased, reaching lows near 2.7% during the pandemic; persistent inflation, federal borrowing and investment in AI and data centres are now adding upward pressure. Fannie Mae forecast an average 30-year fixed rate of 7.5% through 2027.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.