US mortgage rates have climbed to their highest level in more than 14 months, adding to pressure on buyers as sales of previously occupied homes fell to their slowest annual pace in more than a year.
The average 30-year fixed-rate mortgage rose to 6.76% from 6.71% a week earlier, mortgage buyer Freddie Mac said. The rate was 6.35% at the same point last year and has not been higher since 26 June 2025, when it stood at 6.77%.
Higher borrowing costs are reducing the purchasing power of prospective homeowners and encouraging some to delay their move. They have contributed to a largely stagnant US housing market this year.
Existing home sales fell by 2% in August from July, reaching a seasonally adjusted annual rate of 3.98 million units, according to the National Association of Realtors. It was the third consecutive monthly decline.
Sales were also down 1.2% compared with August last year. The latest figure was just below the 4 million annual pace expected by economists.
Borrowing costs for 15-year fixed-rate mortgages also increased, with the average rising to 6.09% from 6.04% the previous week. A year ago, the average stood at 5.5%.
The increase in mortgage rates comes as households continue to contend with elevated prices. Rising home prices and more expensive loans are making it harder for buyers to afford properties, while higher monthly repayments can add hundreds of dollars to borrowing costs.
