Archive · 3 Sep 2026
US Mortgage Rates Rise to Highest Level Since July 2025
The typical interest rate for a 30-year home loan in the United States went up this week.
It reached 6.71%, compared with 6.66% the week before.
This makes borrowing money to buy a home more expensive.
Families are already having trouble affording homes and other large purchases.
Mortgage rates often move with the interest paid on U.S. government bonds.
Those bond yields have risen because investors are worried about government borrowing, spending on AI infrastructure and higher energy prices.
Higher energy prices can make inflation worse.
Federal Reserve Governor Christopher Waller said recent inflation reports may mean the Fed does not need to raise interest rates this month.
The average U.S. 30-year fixed mortgage rate rose to 6.71% from 6.66% the previous week.
The rate is the highest reported by Freddie Mac since July 2025.
Higher mortgage rates add to affordability pressures for households and could make home purchases more difficult.
U.S. Treasury yields have risen amid concerns about government borrowing, AI infrastructure investment and renewed U.S.-Iran hostilities.
Federal Reserve Governor Christopher Waller said recent inflation data could allow the Fed to avoid raising rates at its September 15-16 meeting.
- Who
- Freddie Mac reported the mortgage-rate increase; U.S. households and Federal Reserve officials are affected by or involved in the broader rate outlook.
- What
- The average 30-year fixed U.S. mortgage rate rose to 6.71%, its highest level since July 2025.
- When
- The increase was reported on September 3, 2026, for the week then ending; the Federal Reserve's next cited meeting is September 15-16.
- Where
- The increase concerns the United States; Christopher Waller made his comments at a Reuters Next event in Washington.
- Why
- Mortgage rates rose alongside higher U.S. Treasury yields, which were influenced by government-borrowing concerns, competition for capital from AI infrastructure projects and worries that renewed U.S.-Iran hostilities could increase price pressures.
Higher-rate expectations
No immediate rate increase needed
Federal Reserve policy outlook
Higher-rate expectations
Financial markets had been expecting the Federal Reserve to raise rates at its September meeting, amid persistent inflation and concerns that renewed Middle East hostilities and energy prices could intensify price pressures.
No immediate rate increase needed
Federal Reserve Governor Christopher Waller said easing in the latest two monthly inflation readings could leave him comfortable not raising rates if August inflation shows more of the same.
- 30-year mortgage rate
- 6.71% average this week
- Previous weekly rate
- 6.66%
- Recent rate record
- Highest since July 2025
- 10-year Treasury yield
- 4.744% on Thursday, after reaching 4.818% on Wednesday
- Federal Reserve inflation target
- 2% for the personal consumption expenditures price index
- Next cited Fed meeting
- September 15-16, 2026
- Mortgage-rate source
- Freddie Mac