US Mortgage Rates Climb for Fifth Consecutive Week, Reaching Over a Year High

Average long-term U.S. mortgage rates have climbed for the fifth week in a row, reaching their highest point in over a year. This marks the latest challenge for potential homebuyers who are already contending with elevated borrowing costs.

The benchmark 30-year fixed-rate mortgage rate now stands at 6.69%, a slight increase from 6.66% the previous week, according to mortgage buyer Freddie Mac. This level has not been seen since late July of 2025. For comparison, the average rate at this time last year was 6.63%.

Higher mortgage rates can significantly increase monthly payments for borrowers, thereby reducing their purchasing power. This trend has contributed to sluggish home sales throughout the current year, as some prospective buyers may postpone their purchase decisions.

In contrast, borrowing costs for 15-year fixed-rate mortgages, often utilized by those looking to refinance, saw a slight decrease. The average rate for these loans fell to 6.01% from 6.04% the prior week. A year ago, this rate was 5.75%.

Several factors influence mortgage rates, including inflation, Federal Reserve policy decisions, and bond market investor expectations about the economy. Generally, these rates follow the trajectory of the 10-year Treasury yield, a key benchmark for lenders pricing home loans.

Rates have been on an upward trend this year, partly influenced by geopolitical events. Expectations of increased inflation, driven by soaring crude oil prices following the U.S. war with Iran, have played a role. Despite a recent easing in oil prices, long-term bond yields remain higher than they were before the conflict began in late February, contributing to the sustained rise in mortgage rates. The 10-year Treasury yield was recorded at 4.65% on Thursday, compared to 3.97% in late February before the conflict.