The average US 30-year fixed mortgage rate rose to 7.03% this week from 6.95% last week, Freddie Mac said. It topped 7% for the first time since January 2025 after five straight weekly increases, adding to homebuyers’ affordability pressures.
The 10-year Treasury yield, a loose benchmark for mortgage rates, rose to around 5.15%, its highest level since 2007, as markets reacted to strong economic data and inflation concerns. The article links those concerns in part to higher oil prices amid the Iran war. Mortgage rates remain below the 7.79% peak reached in 2023.
Pending home sales rose 0.3% in August from July but fell 4.7% year over year, according to the National Association of Realtors. Mortgage applications to buy homes were down 11% from a year earlier last week, MBA data showed. Nearly 10% of borrowers opted for adjustable-rate mortgages, which typically reset after an initial fixed period of five, seven or 10 years and can bring sharply higher payments if rates have risen. The median existing-home price was $429,100 in August, up year over year for the 38th consecutive month.
