U.S. 30-Year Mortgage Rate Climbs to 6.95%, Highest Since January 2025
The U.S. 30-year fixed mortgage rate rose to 6.95% for the week ending September 17, Freddie Mac reported. The rate increased from 6.76% a week earlier, marking the highest weekly average since January 2025.
The increase extends a four-week run of higher mortgage rates and pushes borrowing costs close to the 7% threshold. The 15-year fixed mortgage rate also climbed to 6.26%, from 6.09% the previous week. One year ago, the 30-year rate averaged 6.26%.
Mortgage rates have fluctuated as financial markets assess economic data and changing interest-rate expectations. Higher borrowing costs can reduce homebuyers’ purchasing power and discourage refinancing, potentially keeping housing demand under pressure. The latest move also highlights the sensitivity of mortgage rates to changes in longer-term bond yields.
Why it matters
Near-7% mortgage rates increase monthly financing costs for households and can weigh on housing activity. The move also keeps borrowing costs elevated despite ongoing attention to the broader interest-rate outlook.
