U.S. mortgage rates climb to highest level in nearly a year

The average rate on a 30-year U.S. mortgage rose to 6.58% for the week of July 23, lifting the principal-and-interest bill on a $400,000 loan to about $2,549 a month before taxes and insurance. That was about $112 more than the same loan would have cost at 6.15%, the late-December level Freddie Mac recorded, and it meant a buyer trying to keep the same monthly payment could borrow roughly $18,800 less, or about $4,700 less cash upfront on a 20% down purchase.

Freddie Mac's weekly survey put the 30-year fixed-rate mortgage at 6.58% for the week of July 23, up from 6.55% the previous week and the highest reading in about 11 months. The 15-year fixed mortgage averaged 5.96% for the week. First-time buyers were the most exposed, because they have to save a down payment while also absorbing today’s borrowing costs, and the higher rate pushed many of them into lower price ranges.

Freddie Mac Chief Economist Sam Khater said borrowers should remember that shopping around can matter, saving them thousands over the life of the loan. Mortgage rates shape the biggest piece of the monthly payment, and even small moves change how much house a buyer can qualify for. With 30-year rates still far above the levels common earlier in the decade, sellers also felt the pullback when buyers asked for price cuts or stepped away entirely.

Treasury yields, inflation expectations and Federal Reserve policy feed into mortgage pricing. The average stood at 6.96% on Jan. 23, 2025, eased to 6.19% on Oct. 23, 2025, and fell to 6.15% on Dec. 31.