An article summarized by the Associated Press:
The average rate on a 30-year fixed U.S. mortgage increased to 6.49% this week, up from 6.43% last week, according to Freddie Mac. While the rate remains below the 6.72% average from a year ago, the increase raises borrowing costs for homebuyers, making monthly mortgage payments more expensive and reducing affordability. Rates on 15-year fixed mortgages also edged higher to 5.82%.
Mortgage rates have stayed elevated after briefly dipping below 6% earlier this year, contributing to a slowdown in the housing market. They are largely influenced by the 10-year Treasury yield, which has risen amid concerns that higher oil prices and the conflict involving Iran could fuel inflation. As bond yields climb, lenders typically raise mortgage rates as well.
The higher borrowing costs continue to discourage many prospective buyers, extending the housing market slump that began in 2022. Existing home sales have remained sluggish, increasing just 0.7% in the first half of the year compared with the same period in 2025, and are still running at an annual pace of around 4 million homes, well below the historical average of roughly 5.2 million.
