U.S. mortgage rates moved higher again this week, with the average 30-year fixed rate reaching 6.71%, its highest level since July 2025. The increase comes as longer-term Treasury yields rema
U.S. mortgage rates moved higher again this week, with the average 30-year fixed rate reaching 6.71%, its highest level since July 2025. The increase comes as longer-term Treasury yields remain elevated and borrowing costs stay restrictive ahead of Friday’s August employment report.
Freddie Mac said the average 30-year fixed mortgage rose to 6.71% for the week ended Sept. 3, up from 6.66% a week earlier. The average 15-year fixed rate increased to 6.04% from 5.98%. A year earlier, the two rates averaged 6.50% and 5.60%, respectively.
30-Year Mortgage Rate Climbs to 6.71%Freddie Mac’s latest chart shows mortgage rates moving higher through the summer after falling earlier in 2026. The 30-year rate has risen from 6.43% in early July to 6.71%, while the 15-year rate has climbed from 5.79% to 6.04% over the same period.
U.S. 30-Year and 15-Year Fixed Mortgage Rates. Source: Freddie Mac
Freddie Mac’s Primary Mortgage Market Survey is a weekly national average based on mortgage rates collected from thousands of loan applications submitted through lenders. The figures are not individual lender quotes and reflect applications received from the prior Thursday through Wednesday.
The latest 6.71% reading puts the 30-year rate at its highest level in more than a year. That leaves borrowing costs elevated for homebuyers and limits the benefit of any improvement in housing inventory or home-price conditions.
10-Year Treasury Yield Holds Near 4.76%The 10-year U.S. Treasury yield was near 4.76% early Friday, close to the upper end of its one-year range. The supplied chart shows a broad rise from below 4% late last year to nearly 4.8% entering September.
U.S. 10-Year Treasury Yield One-Year Trend. Source: CNBC
The U.S. Treasury recorded the 10-year yield at 4.77% on Sept. 3, up from 4.34% for the seven-year note and 4.63% for the 10-year inflation-indexed? Wait, that comparison isn't right. The relevant point is simply that the 10-year yield remained elevated at 4.77%, keeping pressure on mortgage financing conditions.
Mortgage rates do not move point for point with Treasury yields, but the 10-year yield is an important benchmark for the mortgage-backed securities market. Sustained declines in Treasury yields would improve the chances of lower mortgage rates, while another move higher could keep the 30-year rate near current levels or push it closer to 7%.
Mortgage Applications Rise SlightlyMortgage demand showed limited improvement despite higher borrowing costs. Applications increased 0.8% in the week ended Aug. 28, according to the Mortgage Bankers Association. Purchase applications rose 2%, while refinance applications fell 1%.
That split reflects the pressure created by current rates. Purchase activity has held up better as some buyers adjust to higher financing costs, while refinancing remains less attractive for homeowners who already have lower-rate loans.
The next major catalyst arrives at 8:30 a.m. Eastern on Friday, when the Labor Department releases the August employment report. A stronger jobs reading could put fresh upward pressure on Treasury yields, while weaker labor data could provide some relief for mortgage rates.
For now, the average 30-year fixed mortgage rate at 6.71% and the 10-year Treasury yield near 4.76% point to continued pressure on housing affordability heading into September.
