The average rate on a 30‑year fixed‑rate mortgage in the United States increased to 6.71% in the latest week, up from 6.66% the week before, according to mortgage‑finance provider Freddie Mac. The level marks the highest rate since July 2025 and is above the 6.5% rate that prevailed a year earlier.
The rise follows a parallel climb in Treasury yields. The yield on 10‑year U.S. Treasury bonds reached 4.82% on Wednesday, the highest since October 2023 and the longest‑standing level for long‑term Treasuries since 2006. Analysts attribute the move to a sizable fiscal deficit, renewed corporate bond issuance and expectations surrounding the Federal Reserve’s upcoming policy meeting.
Higher financing costs are already affecting housing affordability. Realtor.com reported that pending home sales fell 0.2% in August compared with the same month a year earlier, marking the first year‑over‑year decline since November 2025. The dip suggests that the recent mortgage‑rate increase has fully translated into weaker buyer demand.
The trend arrives ahead of the November midterm elections, where housing market conditions are expected to become a focal point of political debate. Jake Krimmel, senior economist at Realtor.com, noted that a year ago mortgage rates were trending lower, implying that the current environment could be even more challenging in the months ahead.
While the broader bond market has experienced a painful sell‑off, the current stress is not comparable to the sharp inflation‑driven rate hikes of four years ago. Nonetheless, the combination of elevated mortgage rates and persistent Treasury yields is likely to keep pressure on U.S. housing demand for the near term.
