Mortgage rates top 7% as Sacramento homebuyers face renewed affordability crunch

Mortgage rates have climbed above 7% for the first time in nearly two years, adding another hurdle for California homebuyers already facing high housing costs.Freddie Mac reported Thursday that the average rate on a 30-year fixed mortgage reached 7.03%, the highest level since January 2025. Rates have risen more than a full percentage point since briefly falling below 6% in February.In Sacramento, local mortgage brokers say borrowers are already seeing rates closer to 7.5%.For Raj Kumar and his family, the timing of their home purchase meant getting into their new house before borrowing costs potentially climbed even higher.As the family unpacked boxes, Kumar said the experience of buying a home has "been insane."Cam Villa, a Natomas-based mortgage broker, has been watching the recent jump in rates."It's been a really big rise over the last five weeks," Villa said. "So, first and foremost, we just eclipsed the 7%.