The average rate for a 30-year mortgage in the United States has moved closer to the 7% mark this week, reaching the highest levels seen since July.
This week, the rate increased to 6.84%, up from 6.78% the previous week, according to data from mortgage buyer Freddie Mac. Although this marks an uptick, it is still lower than the average of 7.29% recorded a year ago.

Additionally, the rates for 15-year fixed-rate mortgages, which are often favored by homeowners looking to refinance for lower rates, have also experienced a slight increase. This week, the average rate for those loans rose to 6.02%, up from last week’s 5.99%. A year ago, the average for this type of mortgage was 6.67%, as noted by Freddie Mac.

As mortgage rates rise, they can lead to significant increases in monthly payments, often costing borrowers hundreds of additional dollars. This situation diminishes the purchasing power of homebuyers during a time when home prices are still hovering near record highs, even as U.S. home sales are projected to have their poorest performance since 1995.