Mortgage rates jump to highest level in over a year
Average rate on the benchmark 30-year fixed mortgage rose to 6.71%, Freddie Mac says
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Mortgage rates rose to the highest level in more than a year, mortgage buyer Freddie Mac said Thursday.
Freddie Mac's latest Primary Mortgage Market Survey, released Thursday, showed the average rate on the benchmark 30-year fixed mortgage rose to 6.71% from last week's reading of 6.66%. It was the highest reading since July 31, 2025, when the average rate on the 30-year fixed mortgage was 6.72%.
The average rate on a 30-year loan was 6.5% a year ago.
The average rate on the 30-year fixed mortgage rose to 6.71% on Thursday, according to Freddie Mac. (Daniel Acker/Bloomberg via Getty Images)
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"Purchase demand has remained relatively stable indicating steady interest from buyers adapting to evolving market conditions," said Sam Khater, Freddie Mac's chief economist.
The average rate on a 15-year fixed mortgage rose to 6.04% from last week's reading of 5.98%.
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Mortgage rates are affected by several factors, including the Federal Reserve and geopolitics. Though mortgage rates are not directly affected by the Fed's interest rate decisions, they closely track the 10-year Treasury yield. The 10-year yield hovered around 4.74% as of Thursday afternoon.
Mortgage rates are affected by several factors, including the Federal Reserve and geopolitics. (Al Drago/Bloomberg via Getty Images)
Mortgage rates have risen since the start of the conflict between the U.S. and Iran earlier this year.
"The Middle East conflict has put upward pressure on oil prices, fueling inflation and pushing it further from the Fed's 2% target," said Realtor.com senior economist Jiayi Xu. "When the conflict appeared to be nearing resolution, bond yields declined and mortgage rates followed suit. But the latest escalation in Middle East tensions has driven oil prices higher, reviving inflation concerns and pushing yields and mortgage rates back up."