The increase marks another move higher after the average 30-year fixed mortgage rate stood at 6.55% the previous week. The latest reading matches the level recorded on August 21, 2025, while the rate was 6.74% at the same time a year earlier.
Mortgage costs remain a key factor for buyers navigating the housing market, where affordability has been affected by elevated borrowing costs and limited inventory. The latest figures arrive as some conditions have improved for buyers, with home price growth expected to slow compared with earlier estimates.
30-Year Mortgage Rate Rises to 6.58%
According to Freddie Mac’s latest Primary Mortgage Market Survey, the average interest rate for a 30-year fixed mortgage increased to 6.58% this week, up from 6.55% last week. Freddie Mac Chief Economist Sam Khater said, “The 30-year fixed-rate mortgage averaged 6.58% this week.”
The 30-year fixed mortgage rate has now reached its highest point in nearly a year. Borrowers were also reminded by Khater that comparing different mortgage offers can make a significant difference over the lifetime of a loan, potentially saving thousands of dollars.
The average rate for a 15-year fixed mortgage also moved higher during the week, reaching 5.96% compared with 5.93% the previous week. A year earlier, the average 15-year fixed mortgage rate was 5.87%.
Market Conditions Continue to Influence Mortgage Rates
Mortgage rates are influenced by several factors, including decisions from the Federal Reserve and geopolitical developments. While mortgage rates do not directly follow the Federal Reserve’s interest rate decisions, they closely track movements in the 10-year Treasury yield.
The 10-year Treasury yield rose slightly to 4.699% as of Thursday afternoon. According to Jeff DerGurahian, chief investment officer and head economist at LoanDepot, buyers may benefit from focusing on the total cost of owning a home rather than attempting to predict where rates will move in the coming months.
DerGurahian said the current tension between inflation concerns and renewed conflict between the United States and Iran has been reflected in mortgage rates, as higher oil prices raise concerns about possible effects on future inflation readings.
Housing Market Shows Signs of Change for Buyers
The latest mortgage data comes as the housing market has shown some improvement for buyers who have remained on the sidelines while limited inventory supported higher home prices and mortgage rates stayed relatively stable.
Realtor.com recently released a midyear update to its 2026 housing market forecast, estimating that home price growth will slow to 1.2% this year, reports Fox Business. The updated estimate is lower than the company’s original forecast for the year and below the current pace of inflation.
According to the Realtor.com update, the slower increase in home prices would mean prices are declining in real, inflation-adjusted terms. The mortgage market continues to evolve as buyers weigh borrowing costs, home prices and broader economic conditions.
