This is Why You Might See 8% Mortgage Rates Soon

Also in Weekend Reads: The bond market selloff's consequences for AI, a threat to the buy-and-hold investment style and advice from the Moneyist

Freddie Mac's weekly national rate for a 30-year mortgage loan increased to 7.03% on Sept. 24 from 6.95% the previous week and 6.15% at the end of 2025.

Freddie Mac said on Thursday that the national average rate for a 30-year mortgage loan in the U.S. had risen to 7.03%. The 7% threshold is a psychological barrier - with good reason.

If you were to buy a home at the national median price of $429,100 for August (according to the National Association of Realtors) and put down the traditional 20%, or $85,820, you would borrow $343,250. If you financed that with a 30-year loan with an interest rate of 7.03%, your monthly principal and interest payment would be $2,290.57. And that wouldn't include escrowed property taxes and insurance. And of course in many areas of the U.S., you would be hard-pressed to find a home at the national median price.

At a rate of 6%, the P&I on your 30-year loan for $343,250 would be $2,057.96. At 5% the monthly payment would be $1,842.64.

Aarthi Swaminathan dug further into the mortgage industry's day-to-day developments. The above-7.03% was a weekly average, but 30-year mortgage rates actually hit 7.43% on Thursday, according to a survey of lenders by Mortgage News Daily. Here's why it's possible that mortgage rates will climb to 8%.

More real-estate coverage from Aarthi Swaminathan:

-- She was ready to buy her dream home - but discovered the condo HOA had just 1% in cash reserves

-- Here's where thousands of homeowners face higher insurance bills after FEMA updated its flood maps

How the bond market's selloff can affect the generative artificial-intelligence wave

On Wednesday, the yield on 10-year U.S. Treasury notes BX:TMUBMUSD10Y shot up by nearly 15 basis points (0.15 percentage points) to 5.12%. Early on Friday 10-year notes were yielding 5.22%. Joy Wiltermuth and Isabel Wang explained what the movement in the U.S. Treasury market might mean for Federal Reserve policy and for bond markets in other countries.

The rise in Treasury yields could lead to double-digit interest rates for a massive set of junk-bond offerings planned to help SoftBank finance its AI investments.

Christine Idzelis presented three moves investors might make if they wish to diversify beyond traditional bond and stock funds during this period of volatility.

Another angle: Tax-free bond yields are in a sweet spot. Get in before it's too late.

Meta, Muse and the banks

Meta Platforms launched its Muse AI agent this week. It was an immediate hit with users of Apple's iPhone and Android phones.

This week Meta Platforms (META) rolled out its latest Muse products, featuring an AI agent designed to help people with daily tasks. It can interact with other apps and web services and even serve as an online-shopping assistant.

MarketWatch provided live coverage of Meta's introduction of Muse's new devices that will be connected to the AI agent.

Early reaction:

-- Could Meta's viral Muse app be the company's ChatGPT moment?

-- Meta wants to put its Muse AI assistant on your face - but will consumers buy in?

Through Thursday, Meta's stock had gained 36% for September, while Bank of America's stock (BAC) was down 9.5%. The KBW Nasdaq Bank Index BKX of 24 of the largest U.S. banks was down 6.4%, while the S&P 500 SPX was up slightly.

Joe Adinolfi looked into the buying opportunity for bank stocks.

Take this easy step to help keep elderly loved ones from falling prey to financial scams

Beth Pinsker writes the Fix My Portfolio column. No doubt you have heard about how easy it is for elderly people to fall victim to financial fraud. Even though the scammers are always coming up with new ways to trick people, there is an easy step you can take to help prevent your loved ones from being victims.

Related: I'm afraid of 'starving to death.' Social Security stopped our checks due to a hacked bank account. What can we do?

Evolving stock-market strategies

After observing a shrinking number of stocks driving the stock market's recent gains, Joseph Adinolfi considered the notion that the old buy-and-hold investing philosophy has become obsolete.

A plan to wipe out credit-card debt

Don't Short Yourself is a MarketWatch's new weekly newsletter that offers smart tips to help you earn and grow your money.

It is not unusual for a young adult to be swimming in expenses and racking up some debt. This week in the Don't Short Yourself newsletter, Genna Contino shared her own plan to knock out $7,500 in credit-card debt.

More from Genna Contino:

-- These Gen Z-ers are choosing ETFs over sports bets. How younger investors told us they're building wealth.

-- From $6 eggs to $50,000 cars, these charts show how inflation has defined the past 5 years

Investors' long-term AI ride doesn't have to end in disaster

When might the generative-AI wave that has driven such large gains for semiconductor manufacturers, memory-chip makers and now Meta, for example, take a breather? Or are we in a bubble that will eventually burst?

Jamie Wilhelm and Sunit Gogia of Fort Washington Investment Advisors, who manage the $3.6 billion Touchstone Large Cap Focused Fund SICWX, looked through the AI cycle to explain how investors can spot leading indicators of an eventual AI slowdown. They also explained how investors can select stocks to protect them against market gyrations and even from bad corporate management.

A counterintuitive sign - insiders are buying stocks in this industry

On Friday, West Texas Intermediate crude oil (CL.1) for October delivery was trading for $94.05 a barrel, up from a front-month contract price (CL00) of $57.43 at the end of 2025. The conflict between the U.S. and Iran has helped the S&P 500 energy sector return 39.6% this year, for the best performance among the 11 sectors of the large-cap U.S. benchmark index. The information-technology sector ranks second, with a 27.1% return, while the full S&P 500 has returned 12.5%, with dividends reinvested, according to FactSet.

With oil up so much, the prospect of an eventual end to the Iran conflict might have investors showing caution in the energy sector. But oil-industry executives are still using their own money to load up on their employers' stocks. Michael Brush outlined three reasons oil executives expect their stocks to keep rising.

More on the stock market:

-- These beaten-down stocks could bounce back in January, if history is any guide

-- Stop trying to beat the market: Even the richest Americans can't do it consistently

The Moneyist, eldercare and a potential family conflict

Quentin Fottrell is the Moneyist.

When an elderly parent needs help, and not all of their children live close by, the care burden will not be equal, even if all the children are otherwise getting along. This week Quentin Fottrell - aka The Moneyist - helped a reader who was bearing the main burden for caring for her mother, and having mixed feelings about it.

More from the Moneyist:

-- 'We made a bad, bad decision': I learned the hard way how to manage my aging father's money

-- Social Security overpaid my 82-year-old mother by $20,000. What else is hiding in her finances?

-- My friend is terminally ill. Should she sell her rental home and pay $100,000 in capital gains?

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-Philip van Doorn