Mortgage Rates Top 7% for First Time in More Than 2 Years

Mortgage rates surpassing 7% for the first time in over two years signals tightening financial conditions that directly impact middle-market credit dynamics. Elevated borrowing costs can strain leveraged borrowers, increase refinancing risks, and potentially slow deal activity in sectors reliant on housing and consumer spending. For credit professionals, this shift underscores the need to reassess credit quality and covenant protections as higher rates may pressure cash flows and valuations across leveraged loans and middle-market debt portfolios.