Mortgage rates have risen to their highest level in nearly a year, according to Freddie Mac's latest Primary Mortgage Market Survey released on Thursday. The average interest rate on the benchmark 30-year fixed mortgage increased to 6.58% this week, up from 6.55% last week, marking the highest rate in approximately 11 months. The last time the 30-year fixed mortgage rate was at this level was on August 21, 2025. For comparison, the rate stood at 6.74% a year ago [1].
Freddie Mac chief economist Sam Khater emphasized the importance for borrowers to shop around for mortgage rates, noting that doing so could result in significant savings over the life of a loan. The average rate on a 15-year fixed mortgage also rose, reaching 5.96% from 5.93% last week, while a year ago, the 15-year rate was 5.87% [1].
Mortgage rates are influenced by various factors, including the Federal Reserve and geopolitical developments. While not directly tied to the Fed's interest rate decisions, mortgage rates tend to follow the 10-year Treasury yield, which edged up to 4.699% as of Thursday afternoon. Jeff DerGurahian, chief investment officer and head economist at LoanDepot, highlighted that the current rates reflect a 'tug-of-war' between inflation and renewed conflict between the U.S. and Iran, with higher oil prices raising concerns about future inflation [1].
Despite elevated mortgage rates, there are signs of improvement in housing market conditions for buyers. Realtor.com’s midyear update to its 2026 housing market forecast projects home price growth will slow to 1.2% this year, which is below both the original forecast and the current pace of inflation. This suggests that home prices are effectively declining in real, inflation-adjusted terms [1].
CONCLUSION
Mortgage rates have reached their highest point in nearly a year, driven by a combination of market and geopolitical factors. While rates remain elevated, forecasts indicate slowing home price growth, potentially easing conditions for buyers. Market participants are advised to consider the full cost of homeownership rather than attempting to time rate movements.