Benchmark mortgage rate hits highest mark in more than a year

The 30-year mortgage rate reached its highest mark in more than a year Thursday, portending lower purchasing power for prospective homebuyers.

The benchmark 30-year fixed mortgage rate is 6.71 percent this week, up from 6.66 percent a week ago, Freddie Mac reported Thursday . That is the highest point for the 30-year rate since the week ending July 24, 2025, when it was 6.74 percent.

As recently as late February, the average 30-year mortgage rate was below 6 percent, after hovering between 6.2 percent and 6 percent throughout December and January. But the rate has risen throughout the spring and summer, as bond yields rise in the U.S. and globally.

The 10-year U.S. Treasury bond yield , which mortgage rates follow closely, closed at just above 4.77 percent Thursday. That marked a slight dip from the opening bell, but still well above where the note stood at the end of February.

On the final day of trading that month, one day before the U.S. and Israel launched the Iran war , the 10-year Treasury bond yield closed at 3.96 percent.

Investors have fled the bond market amid persistent inflation, with energy shocks from the Iran conflict spiking fuel costs in the U.S. Mounting public debt globally also has led to the bond sell-off , as the U.S. national debt exceeded $40 trillion last month .

The shorter 15-year mortgage rate, meanwhile, is up from 5.98 percent last week to 6.04 percent this week, Freddie Mac noted . That matched the week ending July 30 for the highest rate since mid-February 2025.

The 15-year mortgage is often used by homeowners who plan to refinance and comes with higher monthly payments.

Mortgage rates are also indirectly impacted by interest rates, set by the Federal Reserve, as borrowing costs for banks impact borrowing costs for individuals.

The Federal Open Market Committee (FOMC) has maintained its baseline interest rate range at between 3.5 percent and 3.75 percent throughout the year, while President Trump has advocated for a rate cut.

Vice President Vance reiterated Trump’s preference Thursday, arguing the FOMC slashing interest rates would help prospective homebuyers.

“The president cares a lot about interest rates, and I think one of the main reasons he cares a lot about interest rates is because he wants Americans to be able to afford a home,” Vance told reporters in the White House press briefing room.

“We’re doing a lot of things to try to keep those interest rates down, but it would be nice to have some help from the Federal Reserve,” the vice president later remarked.

But financial markets are not predicting any chance of a rate cut at the FOMC’s next meeting in less than two weeks. Instead, markets see about a 50 percent chance the panel will keep rates steady and a 50 percent chance it will vote for a quarter-point hike, according to CME Group’s FedWatch tool .

Federal Reserve Chair Kevin Warsh also indicated last week the FOMC could raise interest rates, as inflation remains above the Fed’s 2 percent target.

“We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed. Otherwise, we have work to do,” Warsh said at the Fed’s annual economic symposium in Wyoming.