High Inflation Keeps Mortgage Rates Above 7.5 Percent
Elevated inflation and oil prices are limiting housing inventory and increasing borrowing costs for prospective buyers.
Updated on Oct. 15, 2026 in Residential
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The national inflation rate climbed 3.7% over the 12 months ending in September 2026, contributing to persistent economic headwinds for housing. This shift continues to impact borrowing costs and inventory levels for prospective homebuyers across the United States.
Why it matters
High inflation typically drives up the cost of borrowing money, keeping mortgage rates elevated above 7.5%. These conditions limit housing affordability and influence the decisions of current homeowners regarding whether to list their properties.
The national inflation rate rose 3.7% over the 12 months ending in September 2026, while mortgage rates remain stuck above 7.5%. In Boone and seven surrounding counties, single-family home listings fell by three properties compared to the same period in 2025.
The details
Elevated inflation fueled by rising oil prices has pushed mortgage rates to stay above the 7.5% threshold. This environment has deterred many homeowners from selling, leading to a tightening of available housing inventory in regions like Mid-Missouri. As borrowing costs remain high, the combination of restricted supply and expensive credit continues to shape current real estate market conditions.
Timeline
September 2025 served as the baseline for year-over-year single-family home listing comparisons.
September 2026 marked the end of the 12-month period for the 3.7% inflation increase.
Money Landscape
The current 3.7% inflation reading reflects a significant economic pressure point during the 2026 inflation cycle. This trend complicates the residential real estate market by keeping borrowing costs at levels not seen in recent stable periods.
Prospective buyers should prepare for higher monthly payments due to mortgage rates remaining above 7.5%. If you are considering a home purchase, consult with a qualified financial professional to stress-test your household budget against these ongoing borrowing costs.
The takeaway
Rising inflation continues to dampen housing supply by keeping borrowing costs high and discouraging moves. Homeowners and buyers alike should track upcoming inflation reports as indicators of potential future changes in mortgage interest rates.
Further reading
For broader trends on property market shifts, see our Residential section.
Source note: This article includes information reported by KBIA.
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Given current inflation and mortgage rates, do you feel now is a good time to buy?
