The average interest rate for a 30-year mortgage in the United States has climbed for the fifth consecutive week, reaching its highest point since early August.
The latest figures show the average rate increased to 6.72%, up from 6.54% the previous week, according to data from Freddie Mac released on Thursday. In contrast, this rate is lower than the same time last year when it averaged 7.76%.

Rates for 15-year fixed-rate mortgages, often favored by homeowners looking to refinance, also saw an uptick this week. The average rate for these loans grew to 5.99%, rising from 5.71% the week before. Last year at this time, the average was 7.03%, as noted by Freddie Mac.

Rising mortgage rates can significantly impact borrowers, leading to increased monthly payments and consequently diminishing the purchasing power of homebuyers.

Various factors drive mortgage rates, such as movements in the bond market in response to the Federal Reserve’s decisions on interest rates, along with data pertaining to inflation and general economic conditions. These elements can affect the trajectory of the 10-year Treasury yield, a key benchmark that lenders use to determine mortgage pricing.

Recently, yields have been on the rise following a series of stronger-than-anticipated economic reports from the U.S., contributing to the upward trend in mortgage rates.