The benchmark 30-year fixed mortgage rate climbed to 7.03% this week from 6.95% last week, marking its fifth consecutive weekly increase and the first reading above 7% since the week ending Jan. 16, 2025. The rate remains below the 25-year high of 7.79% reached in October 2023. Inflation is still above the Federal Reserve’s 2% target, while the Iran war has continued to push up energy prices, leading analysts to expect elevated home borrowing costs. Lawrence Yun, chief economist for the National Association of Realtors, said 7% could become the new normal and that job additions would be the key factor supporting homebuying. The central bank raised interest rates by a quarter point last week, bringing its range to 3.75% to 4%. Fed Chair Kevin Warsh said the increase would support a faster return to 2% annual inflation, while Philadelphia Federal Reserve Bank President Anna Paulson said modest additional tightening could be warranted if conditions develop as expected. The Federal Open Market Committee is scheduled to meet again in late October.