The average long-term U.S. mortgage rate rose for a fifth consecutive week, reaching its highest level in just over a year and intensifying the squeeze on prospective homebuyers already contending with steep borrowing costs.
The benchmark 30-year fixed-rate mortgage climbed to 6.69%, mortgage buyer Freddie Mac reported Thursday, edging up from 6.66% a week earlier. The rate stood at 6.63% at the same point last year and has not been higher than its current level since late July 2025.
Higher rates can add hundreds of dollars a month to a borrower’s payments, eroding purchasing power and prompting many shoppers to delay a purchase. That hesitation has helped keep U.S. home sales sluggish throughout the year.
Borrowing costs for 15-year fixed-rate mortgages, often favored by homeowners looking to refinance, moved in the opposite direction. That rate averaged 6.01% this week, down slightly from 6.04%, though still above the 5.75% recorded a year ago.
Mortgage rates are shaped by several forces, including inflation, the Federal Reserve’s policy decisions and bond-market expectations for the broader economy. They generally track the 10-year Treasury yield, which lenders use as a benchmark for pricing home loans. That yield sat at 4.65% by midday Thursday, well above the 3.97% seen in late February.
Rates have trended higher for much of the year, driven in part by the U.S. conflict with Iran, which stoked expectations of hotter inflation as crude oil prices surged. Although oil prices have eased more recently, long-term bond yields remain elevated compared with their pre-conflict levels, keeping upward pressure on home financing costs.
The latest increase extends a volatile stretch for the housing market, which has swung between periods of relief and strain over the past two years. Earlier in 2026, rates had already jumped to multi-month highs that cooled buyer activity, underscoring how sensitive demand has become to shifts in borrowing costs.
For now, the combination of firm bond yields and persistent inflation concerns leaves little indication of near-term relief. Prospective buyers weighing a purchase this autumn face a market where affordability remains constrained and the direction of rates hinges largely on the trajectory of the wider economy.