Mortgage rates climbed to their highest level in more than a year this week, Freddie Mac reported Thursday.
By the numbers:
The average rate for a 30-year fixed mortgage rose to 6.71%, up from 6.66% last week, according to Freddie Mac’s latest Primary Mortgage Market Survey. It was the highest average rate since July 31, 2025, when the 30-year mortgage rate reached 6.72%.
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The average rate was 6.5% a year ago.
What they're saying:
"Purchase demand has remained relatively stable indicating steady interest from buyers adapting to evolving market conditions," said Sam Khater, Freddie Mac’s chief economist.
Dig deeper:
The average rate for a 15-year fixed mortgage also increased, rising to 6.04% from 5.98% last week.
Mortgage rates are influenced by several factors, including Federal Reserve policy and geopolitical developments. Although mortgage rates are not directly tied to the Fed’s interest-rate decisions, they generally track the 10-year Treasury yield, which hovered around 4.74% Thursday afternoon.
Rates have increased since the conflict between the U.S. and Iran began earlier this year.
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"The Middle East conflict has put upward pressure on oil prices, fueling inflation and pushing it further from the Fed’s 2% target," said Realtor.com senior economist Jiayi Xu. "When the conflict appeared to be nearing resolution, bond yields declined and mortgage rates followed suit. But the latest escalation in Middle East tensions has driven oil prices higher, reviving inflation concerns and pushing yields and mortgage rates back up."
The Source: FOX Business contributed to this report. The information in this story came from Freddie Mac’s latest Primary Mortgage Market Survey, which provided the weekly average rates for 30-year and 15-year fixed mortgages. This story was reported from Los Angeles.