The average rate for a 30-year fixed mortgage in the U.S. has risen to its highest point in over a year, reaching 6.71% this week, according to Freddie Mac.
This marks an increase from last week's average of 6.66% and surpasses the 6.50% rate from the same period a year ago. The current rate is the highest recorded since July 31, 2025, when it stood at 6.72%.
Rising mortgage rates can significantly increase monthly payments for borrowers, thereby reducing their purchasing power. This increase in borrowing costs is a contributing factor to the current slowdown in U.S. home sales.
Rates for 15-year fixed-rate mortgages, a popular option for homeowners refinancing their loans, also saw an increase. The average rate for a 15-year mortgage climbed to 6.04% from 5.98% last week, up from 5.60% a year ago.
Several factors influence mortgage rates, including inflation trends, decisions by the Federal Reserve regarding its policy rate, and the expectations of bond market investors about the economy. Generally, mortgage rates track the yield on the 10-year Treasury note, which lenders use as a benchmark for pricing home loans.