Mortgage rates in the U.S. have stabilised but remain higher than July, adding pressure to potential buyers and keeping the housing market cautious amid broader economic tensions.
U.S. mortgage rates have largely gone flat in the latest weekly reading, but they remain above July’s average and continue to squeeze would-be buyers. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.69%, only a fraction above the previous week, yet still higher than the 6.75% average recorded in July and well above where many borrowers had hoped rates would settle this summer.
The increase extends a run of higher borrowing costs that has left the housing market sluggish. AP reported that the 30-year rate has now risen for five straight weeks and sits at its highest level since July 2025, while the 15-year mortgage, often used by people refinancing, edged down to 6.01% from 6.04% a week earlier. Even so, that shorter-term rate remains above its level a year ago, underscoring how broad the pressure has been on homeowners and buyers alike.
Economists say mortgage rates are being pushed around by the same forces that have driven them for much of the past two years: inflation expectations, Federal Reserve policy and shifts in the bond market. AP noted that mortgage costs tend to track the 10-year Treasury yield, which has moved higher as investors weigh inflation risks linked in part to oil prices and geopolitical tensions. That has added to already strained affordability, limiting how much house many buyers can afford.
Earlier this year, Freddie Mac chief economist Sam Khater said there were signs of modest relief as inventory improved and new-home sales picked up, giving buyers a little more room to manoeuvre. But the latest figures suggest that any improvement has been uneven at best. Even with rates no longer surging week to week, they remain elevated enough to keep monthly payments high and the housing market cautious.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
