This week, mortgage rates saw another increase, hitting their highest level in almost a year, as reported by mortgage buyer Freddie Mac on Thursday.
The average interest rate for a standard 30-year fixed mortgage is now at 6.58%, a slight uptick from 6.55% the previous week, according to Freddie Mac’s latest Primary Mortgage Market Survey.
This current figure is the highest since it registered at 6.58% nearly 11 months ago on August 21, 2025. A year ago, rates stood at 6.74%.
REALTOR.COM forecasts an improvement in home affordability as home price growth decelerates
“The average interest rate on a 30-year fixed-rate mortgage this week was 6.58%,” stated Sam Cater, chief economist at Freddie Mac.
“As the market landscape changes, it’s crucial for borrowers to consider shopping around for mortgage rates; it can potentially save them thousands over the duration of their loan,” Carter noted.
The average interest rate on a 15-year fixed mortgage has also risen, now at 5.96% compared to 5.93% last week. Last year, the average for this type of mortgage was 5.87%.
Entry-level housing affordability is improving. These areas are great for first-time buyers
Several factors influence mortgage rates, including actions by the Federal Reserve and international events. Although mortgage rates are not directly influenced by the Fed’s decisions on interest rates, they closely correlate with the yield on the 10-year Treasury note, which increased slightly to 4.699% on Thursday afternoon.
“While mortgage rates remain elevated, homebuyers should prioritize understanding the total cost of homeownership instead of trying to predict future rates,” suggested Jeff Dergrahian, chief investment officer and economist at LoanDepot.
“The ongoing tensions related to inflation and the new conflict between the U.S. and Iran are reflected in the current interest rates, as rising oil prices create concerns about future inflation metrics,” Dergrahian added.
Record drop in home asking prices boosts buyer affordability
As the latest mortgage figures were released, conditions in the housing market showed some signs of improvement for buyers. However, many were still hesitant, lingering on the sidelines as low inventory continued to prop up home prices, and mortgage rates remained relatively stable.
Realtor.com has recently issued its mid-year housing market forecast for 2026, predicting a slowdown in home price growth to about 1.2% this year. This is less than earlier estimates and also below the current inflation rate, indicating that house prices may effectively decline when adjusted for inflation.
