US Mortgage Rates Climb Toward 6.5 Percent as Inflation Concerns Deepen

Freddie Mac reports a second straight week of increases for the benchmark 30-year loan.

Home borrowing costs climbed for the second consecutive week as the average long-term U.S. mortgage rate approached 6.5 percent, dealing another blow to prospective buyers in a persistently sluggish housing market, according to Freddie Mac.

The benchmark 30-year fixed-rate mortgage edged up to 6.49 percent from 6.43 percent the previous week, federal mortgage buyer Freddie Mac reported Thursday. Despite the recent increase, the current average remains below its position from one year ago, when it stood at 6.72 percent.

The upward trajectory in rates closely tracks the movement of the 10-year Treasury yield, which serves as the primary pricing guide for residential lenders. Bond yields have faced steady upward pressure due to investor anxieties over inflation and elevated crude oil prices linked to the conflict with Iran, which began in late February. The 10-year Treasury yield rose to 4.55 percent by midday Thursday, up from 4.49 percent a week prior, and significantly higher than the 3.97 percent baseline recorded just before the outbreak of the war.

Short-term borrowing experienced a parallel increase. The average rate on a 15-year fixed mortgage, a vehicle frequently utilized by homeowners looking to refinance, rose to 5.82 percent from 5.79 percent last week. One year ago, the 15-year average hovered at 5.86 percent.

The renewed rate volatility comes after a brief period of relief in February, when the 30-year loan average dipped below 6 percent for the first time since late 2022. The subsequent reversal has heavily suppressed national transactional volume. According to data from the National Association of Realtors, seasonally adjusted sales of existing U.S. homes through the first half of this year are up just 0.7 percent compared to the same timeframe in 2025.

Total sales across the country continue to sit near a seasonally adjusted annual rate of 4 million units. That pace falls far short of the historical baseline of roughly 5.2 million homes, extending a broad national housing slump driven by buyers priced out or sidelined by economic uncertainty.

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