US 30-Year Mortgage Rates Climb to Highest Level in Over a Year
US 30-year fixed mortgage rate rose to 6.71%, the highest since July 2025, driven by rising Treasury yields and inflation concerns.
The average rate on the popular US 30-year fixed-rate mortgage has climbed to its highest level in more than a year, adding fresh pressure on households already grappling with affordability issues. Mortgage finance agency Freddie Mac reported on Thursday that the rate averaged 6.71%, up from 6.66% the previous week, marking the steepest level since July 2025.
The uptick in mortgage rates mirrors movements in US Treasury yields, which have been on the rise in recent weeks. Several factors are contributing to this trend, including concerns that government borrowing may be outpacing its repayment capacity, competition for capital from companies investing in AI-related infrastructure, and worries that the US-Iran conflict could further intensify price pressures.
Inflation, as measured by the Federal Reserve's preferred gauge — the personal consumption expenditures price index — has remained above the central bank's 2% target for roughly five and a half years, with pressures intensifying earlier this year.
On Thursday, the yield on the benchmark 10-year Treasury note eased to 4.744%, following a sharp jump on Wednesday to 4.818% — its highest level since November 1, 2023. The decline came after Federal Reserve Governor Christopher Waller indicated that, given the easing evident in the most recent two monthly inflation readings, there may be no need for the central bank to raise rates at its upcoming September 15-16 meeting, contrary to what financial markets had been expecting.
"Mortgage rates are not low, auto loans are not -- rates are not low," Waller said at a Varta Wire Next event in Washington. "And if I see housing's in the tank, new cars have gotten almost to be a luxury instead of a normal thing that a middle class family can do — that's not loose financial conditions."
Waller expressed encouragement from recent inflation readings, suggesting that similar data in the upcoming August inflation report would leave him comfortable holding rates steady at the next policy meeting.