Mortgage Rates Surpass 7% as Home Affordability Declines
The average rate on a 30-year fixed mortgage has climbed above 7% for the first time since January 2025, marking the fifth consecutive week of increases.
The average long-term U.S. mortgage rate has risen above 7% for the first time since January 2025, continuing a five-week trend of increases and presenting a significant affordability challenge for prospective homebuyers.
The weekly average for a 30-year fixed-rate home loan reached 7.03%, up from 6.95% the previous week, according to Freddie Mac. This figure is the highest recorded since January 16, 2025, when the average stood at 7.04%. A year ago, the average rate was 6.30%.
Borrowing costs for 15-year fixed-rate mortgages, commonly utilized by those refinancing existing home loans, also saw an increase. The average rate for this term climbed to 6.42% from 6.26% last week, compared to 5.49% a year ago.
Elevated mortgage rates can substantially increase monthly housing costs, thereby diminishing the purchasing power of potential buyers. This rise in borrowing expenses may also prompt prospective homeowners to postpone their purchase decisions.