Mortgage Rates Climb for 5th Straight Week, Pushing Average on a 30-Year Home Loan Above 7%
For sale sign is seen outside of a home in Arlington Heights, Ill., Wednesday, Sept. 16, 2026. (AP Photo / Nam Y. Huh)
The average long-term U.S. mortgage rate rose this week above 7% for the first time since January 2025, the latest affordability setback for prospective homebuyers following a five-week run of rate increases.
The weekly average rate on a 30-year fixed-rate home loan rose to 7.03% from 6.95% last week, mortgage buyer Freddie Mac said Thursday. One year ago, the average rate was 6.30%.
The average rate is now the highest it’s been since Jan. 16, 2025, when it was at 7.04%.
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 6.42% from 6.26% last week. A year ago, it was at 5.49%.
Higher mortgage rates can add hundreds of dollars a month to borrowers’ costs, limiting homebuyers’ purchasing power. As rates rise, that can also lead prospective home shoppers to delay buying.
The housing market has been stuck in a rut this year in large part because of rising borrowing costs. Mortgage rates have continued to march higher in the months since the U.S. and Israel attacked Iran in late February.
Mortgage rates are influenced by inflation, Federal Reserve policy and bond-market investors’ expectations for the economy, among other factors. They generally follow the trajectory of the 10-year Treasury yield, which lenders use as a guide to pricing home loans.
Expectations of higher inflation amid surging oil prices have pushed up the 10-year Treasury yield, which was at 3.97% in late February, before the war began. It surged to 5.17% in midday trading on the bond market Thursday. That’s put its roughly back to where it was in 2007.
