America In Focus: Money pressures climb as mortgage rate tops 7%, bond yields rise
U.S. mortgage rates have climbed above 7% for the first time since early 2025, signaling increased financial pressure on homebuyers. Simultaneously, the Department of Energy is investing $2 billion to upgrade the power grid to meet rising energy demands from AI development.
Why it matters
Rising interest rates and infrastructure strain reflect broader economic challenges impacting both household affordability and national energy policy.
The average long-term U.S. mortgage rate rose this week above 7% for the first time since January 2025, the latest affordability setback for prospective homebuyers following a five-week run of rate increases. The weekly average rate on a 30-year fixed-rate home loan rose to 7.03% from 6.95% last week, mortgage buyer Freddie Mac said Thursday. One year ago, the average rate was 6.30%. Meanwhile, the Energy Department said Thursday that it will spend almost $2 billion to try to squeeze more electricity out of the nation’s aging and stressed power grid, as President Donald Trump’s administration steps up efforts to avoid blackouts amid skyrocketing energy demand spurred by artificial intelligence.
Traders work on the floor at the New York Stock Exchange in New York, Wednesday, Sept. 16, 2026.
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