Benchmark mortgage rate hits 14-month high as bond yields keep rising

The U.S. 30-year mortgage rate reached a 14-month high on Thursday, as global bond yields continue to rise .

The benchmark 30-year fixed mortgage rate is 6.76 percent this week, up from 6.71 percent a week ago, Freddie Mac reported Thursday . That marks the highest point for the 30-year rate since the week ending June 26, 2025, when the figure reached 6.77 percent.

The average 30-year mortgage rate was below 6 percent in the last week of February, before U.S. and Israel waged war on Iran. The rate has risen since, inching closer to 7 percent over the last six-plus months.

The 30-year rate has topped 7 percent just once in the last two years: in the week ending Jan. 16, 2025, when it was 7.04 percent.

The increase in mortgage rates has come as bond yields have risen in the U.S. and globally . The 10-year U.S. Treasury bond yield , which the 30-year mortgage rate follows closely, closed at roughly 4.96 percent on Thursday — its highest closing mark since April 2007.

On the final day of February trading, one day before the Iran war commenced, the note closed at 3.96 percent.

Persistent inflation and the economic uncertainty driven by the conflict, along with the mounting U.S. national debt , have contributed to the spike in bond yields. The 30-year Treasury bond yield closed at more than 5.36 percent Thursday, its highest closing mark since April 2002.

Amid the rising mortgage rates, sales of existing homes dropped to their lowest level in more than a year in August, according to a report released Thursday by the National Association of Realtors (NAR).

Sales of previously occupied homes fell by 2 percent last month to a seasonally adjusted annual rate of 3.98 million. Last month also marked a 3.2-percent increase in unsold inventory relative to July.

Congress passed a bipartisan bill earlier this year aimed at increasing the U.S. housing supply. The legislation became law in July without President Trump signature — a move he made in protest of the Senate’s failure to pass his voter ID bill.

The 15-year mortgage rate also increased this week, to 6.09 percent, according to Freddie Mac, up slightly from 6.04 percent last week. During the first week of March, the rate was below 5.5 percent.

Homeowners who plan to refinance often enter into a 15-year mortgage , which comes with higher monthly payments.