US mortgage rates have risen to 6.71%, their highest level since July 2025, adding to borrowing costs for prospective homebuyers across the country.
The average rate on a 30-year fixed-rate mortgage increased from 6.66% last week, according to Freddie Mac’s latest Primary Mortgage Market Survey published on Thursday, September 3. It stood at 6.50% a year ago.
The average 15-year fixed-rate mortgage also moved higher, reaching 6.04% from 5.98% the previous week. The equivalent rate was 5.60% at the same point last year.
The 30-year rate is now at its highest since July 31, 2025, when it averaged 6.72%. Higher rates can reduce the amount buyers are able to borrow and increase monthly repayments on new home loans.
Sam Khater, Freddie Mac’s chief economist, said purchase demand had remained “relatively stable”, suggesting that buyers were continuing to adapt to changing market conditions despite elevated borrowing costs.
Mortgage rates are affected by inflation, expectations for Federal Reserve policy and movements in the bond market. They generally follow the direction of the yield on the 10-year US Treasury, which lenders use as a guide when pricing home loans.
