U.S. mortgage rates moved higher this week, with the average 30-year fixed mortgage rate reaching its highest level in nearly three years.
According to the latest data from Freddie Mac, the 30-year fixed rate climbed to 7.28%.
30-Year Mortgage Rate Reaches 7.28%
The average 30-year fixed mortgage rate rose from 7.03% last week to 7.28% this week.
This marks the highest level since October 2023.
Mortgage costs are also significantly higher than they were one year ago. At the same time last year, the average 30-year mortgage rate stood at 6.34%.
15-Year Mortgage Rates Also Increase
The average 15-year fixed mortgage rate also moved higher.
It increased to 6.60%, up from 6.42% in the previous week.
A year earlier, the average 15-year mortgage rate was 5.55%.
Higher Rates Increase Borrowing Costs
The latest increase in mortgage rates raises borrowing costs for homebuyers and homeowners looking to refinance.
Higher mortgage rates can reduce housing affordability by increasing monthly payments, especially for buyers financing a large portion of a home purchase.
As a result, movements in mortgage rates remain an important factor for the broader U.S. housing market.
Freddie Mac Highlights Economic Conditions
Freddie Mac Chief Economist Sam Khater said the housing market continues to receive support from favorable economic conditions despite the current direction of mortgage rates.
Investors and homebuyers will continue to monitor interest-rate trends for signs of whether borrowing costs could remain elevated or begin to ease.
U.S. Housing Market Remains in Focus
The latest figures were published as part of Freddie Mac’s Primary Mortgage Market Survey.
With the 30-year mortgage rate now at 7.28%, attention will remain on Treasury yields, Federal Reserve policy expectations and broader economic conditions.
These factors could play a major role in determining the next move in U.S. mortgage rates and housing affordability.
