Mortgage Rates Just Crossed 7%: What This Means for Homebuyers in the US

U.S. mortgage rates just jumped to 7.03%, the highest in a year. So what does that actually mean if you want to buy a home? We follow Maya, a first-time buyer who buys the typical $429,100 home with 3% down, and track every dollar of her mortgage. In this case: 📈 Why mortgage rates just jumped (the Fed, bonds and inflation) 🏠 Maya's $416,227 loan at 7.03% 💸 Where the money goes: 87% to interest in year one ⏳ Month 243: when your home finally gets the bigger slice 💰 30-year total: almost $1 million for a $429,000 home ⚠️ What happens if you sell after 5 years ✅ 3 things you can do about it CHAPTERS 0:00 The $2,778 question 0:36 Why rates just jumped 1:58 The case of Maya 2:34 Where does her money go? 3:38 The full 30 years 4:35 Selling after 5 years 5:35 What you can do Would you buy a home at 7%? Let me know in the comments 👇 Sources: Freddie Mac (30-year average 7.03%, Sept 24, 2026), Federal Reserve (Sept 16, 2026 decision), National Association of Realtors (median existing-home price $429,100, August 2026). Payments shown are principal and interest only, before property taxes, insurance and mortgage insurance. 📌 Subscribe to The Compound Case for a new money case every week. DISCLAIMER: This video is for educational and entertainment purposes only. It is not financial, investment, tax or legal advice. Always do your own research or consult a licensed professional before making financial decisions. #mortgagerates #housingmarket #personalfinance