The average 30-year mortgage rate in the United States has seen another increase this week, hitting its highest point in almost three months.
According to Freddie Mac, the rate climbed to 6.54% from the previous week’s 6.44%. Even with this recent rise, the current average remains lower than it was last year, when it peaked at a daunting 23-year high of 7.79%.

When mortgage rates rise, it can lead to significant additional costs for borrowers, sometimes amounting to hundreds of dollars more each month. The average mortgage rate has now ascended for four consecutive weeks and stands at the highest level since August 1, when it was recorded at 6.73%.

Several factors impact mortgage rates, particularly the reactions of the bond market to the interest rate policy decisions made by the Federal Reserve, alongside data related to inflation and overall economic performance.

Borrowing costs for 15-year fixed-rate mortgages, which are favored by homeowners looking to refinance for a better rate, also saw an increase this week. The rate for these loans rose to 5.71%, up from last week’s 5.63%. Comparing this to a year ago, the average rate stood at 7.03%, according to Freddie Mac.