According to Freddie Mac's Primary Mortgage Market Survey released on Thursday (September 3), housing loan rates in the United States continued their upward trajectory.

As of this week, the average rate on a 30-year fixed-rate mortgage rose to 6.71%, an increase of 5 basis points from the previous week's 6.66% and above the 6.50% recorded a year earlier. This marks the highest level since July 31, 2025. The average rate on a 15-year fixed-rate mortgage also ticked up to 6.04% from 5.98% the prior week, climbing 6 basis points week-over-week and sitting 44 basis points higher than the year-ago reading of 5.60%.

Freddie Mac's survey primarily covers purchase loan applications that meet conventional loan acquisition standards, feature fully amortizing payments, and involve borrowers with solid credit profiles. As a result, the weekly average figures published by the agency may differ somewhat from real-time rates locked in by lenders on a daily basis in the market.

Rates Continue Their Climb While Purchase Demand Holds Steady

Freddie Mac's Chief Economist Sam Carter noted that despite the 30-year fixed mortgage rate rising to 6.71% this week, purchase demand has remained relatively stable, suggesting that some buyers are gradually adapting to the current higher financing costs and the evolving housing market environment. Mortgage rates have now been climbing for several consecutive weeks. During the week of August 20, the 30-year fixed rate briefly dipped to 6.65%, but has since risen for two straight weeks, bringing the four-week average to approximately 6.67%.

Although U.S. mortgage rates are not directly determined by the federal funds rate, they typically show a strong correlation with movements in long-term Treasury yields, particularly the 10-year Treasury note. With long-term market rates remaining elevated, housing financing costs are once again facing renewed upward pressure.

Elevated Rates Continue to Squeeze Housing Affordability

For the U.S. housing market, a 30-year mortgage rate hovering around 6.7% remains significantly elevated. With home prices and down payments held constant, a rise in mortgage rates directly increases the monthly principal-and-interest payment for buyers, thereby reducing the home price they can afford. For borrowers taking on larger loan amounts, even a modest increase of a few dozen basis points can lead to a noticeable rise in both total lifetime interest costs and monthly payments. This remains one of the key constraints currently weighing on the U.S. housing market.

Higher financing costs not only erode the purchasing power of first-time homebuyers but also discourage existing homeowners who hold lower-rate mortgages from selling and buying again, thereby affecting both housing demand and market supply. The 15-year mortgage rate also climbing to 6.04% means refinancing costs remain elevated, and for households that previously secured loans at lower rates, refinancing at current levels still holds limited appeal.

Overall, U.S. mortgage rates are once again approaching the highs seen over the past year-plus, though Freddie Mac data indicates that purchase demand has not yet shown any significant deterioration. Whether the housing market can improve further in the near term will largely depend on whether long-term Treasury yields and overall financing costs can retreat once again.