Mortgage Rates Hit Highest Level in Over a Year

Freddie Mac reported on Thursday that mortgage rates rose to their highest point in more than a year. The average rate for a 30-year fixed mortgage has increased to 6.71%, up from last week’s 6.66%. This marks the highest rate since July 31, 2025, when it was recorded at 6.72%.

It’s noteworthy to mention that just a year ago, the average rate was 6.5%.

Sam Khater, the chief economist at Freddie Mac, commented on the situation, saying, “Purchase demand has remained relatively stable, indicating steady interest from buyers adapting to evolving market conditions.”

Meanwhile, the average rate for a 15-year fixed mortgage also saw a rise, going from last week’s 5.98% to 6.04% this week.

Several elements can influence mortgage rates, such as the Federal Reserve’s policies and geopolitical events. While rates aren’t directly determined by the Fed’s interest rate moves, they tend to follow the trend of the 10-year Treasury yield closely, which stood at about 4.74% on Thursday afternoon.

This year has already seen an uptick in mortgage rates, particularly since the onset of the conflict between the U.S. and Iran. Jiayi Xu, a senior economist at Realtor.com, added that the situation in the Middle East has sparked increases in oil prices, which in turn fuels inflation, moving it further away from the Fed’s targeted 2%. “When the conflict seemed to be resolving, bond yields fell, and mortgage rates followed,” she noted. However, the latest tensions have contributed to rising oil prices again, reviving inflation fears and leading to an increase in both yields and mortgage rates.