Benchmark mortgage rate hits 14-month high

The U.S. 30-year fixed mortgage rate reached 6.76 percent this week. This marks a 14-month high. The rate is up from 6.71 percent the previous week. Freddie Mac reported the data on Thursday. The figure is the highest since late June 2025.

The 10-year U.S. Treasury yield closed at 4.96 percent. This is its highest closing mark since April 2007. The 30-year Treasury yield exceeded 5.36 percent. That is a high not seen since April 2002. These bond yield increases drive mortgage costs higher.

Bond yields drive mortgage costs

Bond yields have risen globally. Persistent inflation is a key factor. Economic uncertainty from the Iran conflict adds pressure. The U.S. national debt is also mounting. These forces push yields higher. Mortgage rates follow the 10-year Treasury yield closely.

The 10-year Treasury yield was 3.96 percent in late February. It has since climbed to 4.96 percent. The 30-year Treasury yield is above 5.36 percent. These are significant jumps in a short period. Lenders price mortgages based on these benchmark yields.

Housing sales hit a year low

Existing home sales fell to a one-year low in August. The National Association of Realtors reported the drop. Sales declined by 2 percent last month. The seasonally adjusted annual rate was 3.98 million. Unsold inventory rose by 3.2 percent compared to July.

The 15-year mortgage rate also increased. It rose to 6.09 percent this week. The previous week rate was 6.04 percent. In early March, the 15-year rate was below 5.5 percent. Refinancing via 15-year loans carries higher monthly payments.

Legislative response to housing supply

Congress passed a bipartisan housing bill earlier this year. The law aimed to increase housing supply. It became law in July without presidential signature. President Trump withheld his signature in protest. The Senate failed to pass his voter ID bill.