30-Year Mortgage Rate Jumps to 7.28%, the Highest in Nearly Three Years
Freddie Mac says the average rate rose from 7.03% in the biggest weekly gain in about four years, driven by a bond market sell-off tied to the Iran war and government spending.
The average rate on a 30-year fixed mortgage in the United States jumped to 7.28% this week, the highest level since November 2023, according to Freddie Mac data released Thursday. It was up from 7.03% a week earlier and marked the largest one-week increase in nearly four years.
The last time the rate was higher was the week of November 22, 2023, when it stood at 7.29%. A year ago the same loan averaged 6.34%, so borrowers are now paying almost a full percentage point more than they were at this time in 2025. The 15-year fixed rate also climbed, to 6.6% from 6.42% the week before, compared with 5.55% a year earlier. Mortgage rates have now risen for six straight weeks.
The cause is the bond market. Mortgage rates move with the 10-year Treasury yield, which has climbed above 5% to its highest level in decades and hovered around 5.23% on Thursday afternoon. Analysts point to the war with Iran, which has dragged on for seven months and is adding to government spending that could keep inflation elevated. Investors are demanding higher returns to hold long-term U.S. debt, and lenders are passing that on to home buyers. The Federal Reserve does not set mortgage rates directly, but geopolitical shocks and bond market turmoil feed into them quickly.
The cost to buyers is substantial. Realtor.com's senior economist said the rate climb has added more than $200 to the monthly principal and interest payment on a median-priced home, even though the median price itself has fallen from a year ago. That means lower sticker prices are not making the monthly bill any smaller for people who need to borrow. Individual rates also vary widely by credit score and down payment, with a spread of nearly a full percentage point between borrowers. According to the same analysis, that gap is worth roughly $28,400 in buying power.
Freddie Mac's chief economist said the housing market continues to be supported by favorable economic conditions. The statement sits uneasily with the data, which show affordability moving in the wrong direction for the sixth week in a row. Higher rates also tend to keep existing owners in place, since many hold loans well below 7%, which limits the supply of homes for sale and has been a feature of the market for the past three years.
For prospective buyers, the numbers add up to a harder autumn. Anyone who locked a rate in the low 6% range over the summer is looking at a meaningfully better deal than what is available now. Those still shopping face payments that are noticeably higher than a month ago on the same house. Housing is one of the largest components of household spending, and the jump lands just weeks before the midterm elections, when voters have already named the cost of living as a top concern.
Whether rates keep rising depends on the same forces that pushed them up: the path of the war, the size of federal borrowing, and what the Federal Reserve signals on inflation. Next week's reading from Freddie Mac will show whether this week's jump was a one-time jolt or the start of a longer move higher.
