Key facts
- The average U.S. 30-year fixed-rate mortgage rose to 6.71% this week.
- This is the highest rate recorded since July 2025.
- The rate increased from 6.66% in the prior week.
- Borrowing costs for 15-year fixed-rate mortgages also increased to 6.04%.
- Rising oil prices and inflation concerns are contributing to higher bond yields.
- The Federal Reserve is under pressure to address elevated inflation.
The average interest rate for a 30-year fixed-rate mortgage in the U.S. has climbed to 6.71%, its highest point since July 2025. This increase, up from 6.66% in the previous week, adds to existing affordability challenges for homebuyers. The rise is influenced by factors including inflation, Federal Reserve policy expectations, and bond market sentiment, which are closely tracking the 10-year Treasury yield. Renewed conflict in the Middle East has fueled expectations for higher inflation as crude oil prices surged, pushing long-term bond yields higher. Higher mortgage rates increase borrowing costs, potentially reducing purchasing power and leading some prospective buyers to delay home purchases, contributing to a slump in U.S. home sales.