Mortgage rates climbed for another week, pushing the average rate on a long-term U.S. home loan to its highest point in more than a year.
Freddie Mac said Thursday that the average rate on a benchmark 30-year fixed mortgage increased to 6.71%, up from 6.66% a week earlier. At this time last year, the rate averaged 6.50%.
The latest move higher adds more pressure to buyers already facing elevated home prices. Even a modest rise in mortgage rates can translate into hundreds of dollars in additional monthly payments, reducing purchasing power and prompting some would-be buyers to stay on the sidelines. That dynamic has helped keep U.S. home sales sluggish this year.
The average 30-year rate now stands at its highest level since July 31, 2025, when it reached 6.72%.
Rates also moved up for 15-year fixed mortgages, a popular option among homeowners looking to refinance. The average rose to 6.04% from 5.98% last week. One year ago, the 15-year rate averaged 5.60%.
Mortgage rates are shaped by a mix of forces, including inflation trends, Federal Reserve interest rate policy and bond investors’ outlook for the economy. They typically move in line with the 10-year Treasury yield, which lenders often use as a key reference point when setting home loan rates.
