Mortgage Rates Hit 7%. Is the Bank of Mom and Dad Open?

Your son or daughter finally found the house. Then the lender ran the numbers.

The average 30-year fixed mortgage just reached 7.03%, according to Freddie Mac’s September 24 report.¹

If your own mortgage is paid off, you might scroll right past that headline.

Until the phone rings.

The down payment. The monthly bill. The extra years of saving they may need. Before long, you’re wondering how much you could help, and what helping could mean for your own retirement.

What 7% mortgage rates add to the monthly bill

In 2021, the average 30-year fixed mortgage rate was about 3%, according to Freddie Mac.² Here’s what the means in dollars: A $400,000 loan over a 30-year term would cost about $1,686 a month at 3%. At a 7% mortgage rate, that payment jumps to about $2,669 — roughly $983 more every month for the same amount borrowed.

Those payments cover principal and interest. Property taxes, insurance and other housing costs would add to the total.

For a buyer with a set monthly budget, that means looking for a less expensive home, bringing a larger down payment, or waiting.

Example: $400,000 loan over 30 years, principal and interest only. Monthly payments are calculated using standard mortgage payment formula based on loan amount, interest rate, and term. The 3% comparison reflects the rounded 2021 average²; 7.03% is the September 24, 2026, average¹. Calculations by Augusta Precious Metals. 

The first home is coming later

If your children have put off buying a home, they have plenty of company.

In the National Association of REALTORS® (NAR) 2025 survey, the median age of first-time buyers reached 40 — up from the late 20’s in the 1980s. First-time buyers accounted for just 21% of purchases — the lowest share since tracking began in 1981. The survey covered transactions from July 2024 through June 2025.³

“The historically low share of first-time buyers underscores the real-world consequences of a housing market starved for affordable inventory.” ³
—Jessica Lautz, NAR deputy chief economist and vice president of research

Higher mortgage rates can also keep homes off the market. If you locked in a low-rate years ago, trading it for a 7% loan isn’t very appealing. So many owners may simply stay put. Economists call this the “lock-in effect.”⁴ 

Fewer homes for sale can keep prices high, according to research from Federal Housing Finance Agency (FHFA).⁴ 

For younger buyers, that’s a tough combination: fewer homes to choose from. Higher prices. And a longer wait — even as the market slows down.

Where your retirement enters the conversation

Family help is already part of the picture. In the same NAR survey, 22% of first-time buyers received a gift or loan from relatives or friends.³

You might want to contribute to a down payment. Or let your children move home while they save. Either choice could change how much you have available for the retirement you planned.

If you’re thinking about downsizing, a higher rate on your next mortgage could leave you with a smaller home and little monthly savings.

All of this can arrive when you’re already wondering how long your savings will last. Schroders’ 2026 survey found that 52% of non-retired respondents were concerned or very concerned about outliving their assets.⁵

Helping family can be deeply rewarding. Building that help into your retirement plan gives you a clearer view of what your savings need to cover.

What that has to do with gold

Start with a question: How much of your retirement depends on your home’s value — and what else is helping support your financial future?

A home can represent years of accumulated wealth. Turning that equity into spending money usually means selling or borrowing against it. As your family’s needs change, it’s worth looking at the full mix of assets you hold.

That’s where diversification comes in: spreading your savings across investments that can respond differently to changing conditions.

“Gold has a key role as a strategic long-term investment and as a mainstay allocation in a well-diversified portfolio.” ⁶
—World Gold Council, “Gold as a Strategic Asset: 2026 Edition”

For some retirement savers, gold could be another way to diversify beyond stocks and bonds. As the World Gold Council points out, its price can also fall, and physical gold pays no interest or dividends,⁷ so any allocation needs to fit your income needs and time horizon.

With housing costs reshaping family plans, it’s worth asking whether your savings are ready for the expenses that could come your way.

Find out where gold and silver could fit

If rising housing costs and 7% mortgage rates have you rethinking your own savings, our free 2026 Gold & Silver IRA Info Kit is a useful place to start.

Inside, you’ll find four essential guides covering why people are buying gold and silver right now, how gold IRAs work, what to compare between companies, and what makes Augusta Precious Metals different.

Explore what to consider before adding gold and silver to your retirement savings — with your family and your future in mind.

GET THE FREE INFO KIT →