Mortgage rates climb to highest level in over 14 months
The 30-year fixed rate mortgage rate rose to 6.76% from 6.71% last week, while 15-year rates increased to 6.09% from 6.04%, mortgage buyer Freddie Mac said.
Mortgage rates rose for the third week in a row, pushing the average long-term U.S. home loan rate to its highest level in over 14 months.
The benchmark 30-year fixed rate mortgage rate rose to 6.76% from 6.71% last week, mortgage buyer Freddie Mac said Thursday. One year ago, the average rate was 6.35%.
Higher mortgage rates can add hundreds of dollars a month in costs for borrowers, limiting homebuyers’ purchasing power. As rates rise, that can also lead prospective home shoppers to delay buying a home, one reason U.S. home sales remain largely stagnant again this year.
The average rate is now the highest it’s been since June 26, 2025, when it was at 6.77%.
Borrowing costs on 15-year fixed-rate mortgages, often sought by borrowers refinancing a home loan, also rose this week. That average rate increased to 6.09% from 6.04% last week. A year ago, it was at 5.5%.
Mortgage rates are influenced by several factors, including inflation, broader policy rate decisions from the Federal Reserve and expectations from bond market investors for the economy. They generally follow the trajectory of the 10-year Treasury yield, which lenders use as a guide to pricing home loans.
Both mortgage rates and bond yields have been mostly rising this year due to the U.S. war with Iran, which has pushed oil prices sharply higher. That’s led to heightened worries about inflation, which drives up bond yields.
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