WASHINGTON — This week, mortgage rates in the United States have hit their highest mark since July, reflecting significant changes in the market.
The average rate for a 30-year fixed mortgage surged to 6.91%, up from 6.85% the previous week, according to the latest data from Freddie Mac. This rate stands in contrast to last year’s figure of 6.62%.

The recent rise in mortgage costs aligns with an increase in bond yields, which serve as benchmarks for lenders when pricing mortgages. With home prices continuing their upward trend, the current environment is becoming more challenging for potential buyers.

For those considering refinancing, the average rate on a 15-year fixed-rate mortgage also saw a rise, reaching 6.13%, an increase from 6% last week and marking the highest level since July. A year ago, this rate was recorded at 5.89%.

Freddie Mac’s chief economist, Sam Khater, highlighted this trend, stating, “With rates nearing 7%, we are witnessing the highest levels in nearly six months.” He noted the current rates are significantly higher than last year, contributing to ongoing challenges in affordability for consumers. However, there appears to be a glimmer of hope as pending home sales are on the rise, indicating that buyers may be gradually entering the market.

Interest rates have been on an upward trajectory since the Federal Reserve indicated last month its plans to raise the benchmark rate only twice this year, a revision from an earlier forecast of four reductions made in September.

The Fed’s cautious approach is largely attributed to persistent inflation, which continues to exceed the central bank’s target of 2%, despite a decline from the peak levels experienced in mid-2022. Additionally, concerns linger regarding the potential impact of President-elect Donald Trump’s economic strategies, particularly his proposal to significantly increase tariffs on imports, which could further drive inflationary pressures in the economy.