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Mortgage Rates Reach Highest Level in Over a Year
Confirmed
In Short: Mortgage rates have surged to their highest point in over a year, reaching 6.71% as of Thursday, according to Freddie Mac.
Mortgage rates have risen to their highest level in over a year, reaching 6.71% as of Thursday, according to Freddie Mac. This increase follows a period of stability and has been linked to the ongoing conflict with Iran.
The rise in mortgage rates, which have climbed since the start of the conflict with Iran, has made buying a home more expensive for many potential buyers. Some borrowers are already facing rates as high as 7%.
While higher rates can significantly increase the cost of purchasing a home, they could also present an opportunity for those who are already homeowners, as refinancing might become more attractive. Experts advise that borrowers with good credit profiles may be able to lock in better rates.
In related news, while petrol prices have reached their highest level since the conflict began, diesel remains below its peak, according to the RAC. This information provides a broader context of rising costs in the economy.
What's confirmed
What's still developing
- Freddie Mac's latest Primary Mortgage Market Survey, released Thursday, showed the average rate on the benchmark 30-year fixed mortgage rose to 6.71% from last week's reading of 6.66%.
- The average rate for a 30-year fixed-rate mortgage rose this week to 6.71%, according to Freddie Mac, the highest in 13 months and up from below 6% in late February.
- With inflation still stuck well above the Federal Reserve's 2% annual target, traders now think the central bank is likely to hike its benchmark rate later this month for the first time since July 2023, according to CME FedWatch, which tracks the probability of rate moves.
- While other mortgage rates sites show rates being quoted to borrowers with top credit profiles, the HousingWire Mortgage Rates Center shows actual locked rates with borrowers of all credit profiles.
- The 30-year fixed mortgage rate averaged 6.71%, up from 6.66% last week and the highest since July 2025, mortgage finance agency Freddie Mac said today.
- “Mortgage rates are not low, auto loans are not — rates are not low,” Waller said at a Reuters Next event in Washington.