US mortgage rates have risen to their highest level in more than a year, with the average cost of a 30-year fixed-rate loan reaching 6.71% this week.
The latest figure from Freddie Mac marks an increase from 6.66% the previous week and is the highest recorded since July 31, 2025, when the average stood at 6.72%. A year ago, the equivalent rate was 6.50%. ([freddiemac.com](https://www.freddiemac.com/pmms?sf230874538=1&utm_source=openai))
The average rate on a 15-year fixed mortgage also moved higher, climbing to 6.04% from 5.98% a week earlier. Freddie Mac’s figures are based on mortgage applications submitted by lenders across the US and are published weekly.
Sam Khater, Freddie Mac’s chief economist, said buyer interest had remained steady despite fluctuations in borrowing costs.
“Purchase demand has remained relatively stable indicating steady interest from buyers adapting to evolving market conditions,” he said. ([freddiemac.com](https://www.freddiemac.com/pmms?sf230874538=1&utm_source=openai))
The increase comes as financial markets respond to renewed inflation concerns linked to escalating tensions in the Middle East. Higher oil prices can add to inflationary pressure, potentially making it more difficult for the Federal Reserve to reduce interest rates.
Mortgage rates do not move directly in line with the Federal Reserve’s decisions. They are more closely influenced by movements in the yield on 10-year US Treasury bonds, a key benchmark for home-loan pricing.
Realtor.com senior economist Jiayi Xu said mortgage costs had fallen when the conflict appeared to be easing, as bond yields declined. The latest escalation, however, has pushed oil prices and inflation expectations higher, contributing to renewed upward pressure on yields and mortgage rates.
Realtor.com reported that the latest rise followed a broad sell-off in global bond markets. It said the average 30-year rate had reached its highest point of 2026, while buyers continued to adjust to changing market conditions. ([realtor.com](https://www.realtor.com/news/trends/mortgage-rates-today-bond-selloff-september-3-2026/?utm_source=openai))
The higher rates are likely to increase monthly repayments for new borrowers and add to affordability pressures in the US housing market, even as some buyers continue to enter the market.
