U.S. Mortgage Rates Reach 6.91%, Highest Since July, Says Freddie Mac

Mortgage rates in the United States climbed this week to their highest levels since July, according to Freddie Mac.

The average 30-year fixed-rate mortgage rose to 6.91%, up from 6.85% the previous week. A year ago, the rate was 6.62%. The 15-year fixed-rate mortgage, often chosen by homeowners seeking to refinance, also increased to 6.13%, compared to 6% last week and 5.89% a year earlier.

The rise in mortgage rates reflects increasing bond yields, which lenders use to price home loans. These higher borrowing costs coincide with the Federal Reserve’s recent indication that it plans to raise its benchmark interest rate twice in 2025, down from the four increases projected earlier.

Inflation, which remains above the Fed’s 2% target despite falling from its 2022 peak, continues to be a concern. Economists also point to potential inflationary pressures from incoming President Donald Trump’s proposed economic policies, including plans to significantly increase tariffs on imports.

The rising rates are expected to weigh on homebuyers and homeowners looking to refinance, further tightening the U.S. housing market.