15-year fixed rate rises to 5.98% from 5.95% the prior week
The benchmark 30-year fixed mortgage rate stood at 6.65% this week, according to Freddie Mac data released Thursday, sitting just shy of 6.69%, the high for the year. Higher borrowing costs can add hundreds of dollars a month for homebuyers, limiting purchasing power and contributing to sluggish U.S. home sales this year.
Freddie Mac’s Thursday release placed the average 30-year rate at 6.65%, matching the level recorded four weeks prior. One year ago, the average rate stood at 6.56%, putting the current figure roughly 9 basis points higher year over year. The year-to-date peak of 6.69% was reached earlier this month.
Higher mortgage rates translate directly into larger monthly payments for borrowers. On a typical home loan, higher rates can add hundreds of dollars a month in costs, limiting homebuyers’ purchasing power.
U.S. home sales have remained sluggish through 2026, with higher financing costs cited as one reason, according to the AP. The rate environment can lead prospective home shoppers to delay buying a home.
The 15-year fixed rate, a product commonly used by borrowers refinancing existing mortgages, also moved higher. The average rate climbed to 5.98% from 5.95% the prior week, according to Freddie Mac.
A year earlier, the 15-year average stood at 5.69%, meaning a borrower facing a new 15-year loan today would confront a rate roughly 29 basis points higher than a year ago.
Higher borrowing costs and reduced purchasing power have continued to shape the housing market through 2026, with prospective buyers and existing homeowners confronting higher monthly obligations on loans taken out at current rates.