The benchmark 30-year fixed-rate mortgage reached a one-year high of 6.71% this week, according to data released Thursday, September 3, 2026, by Freddie Mac. This marks an increase from the previous week's average of 6.66% and represents the highest point for the 30-year rate since the week ending July 24, 2025. The 15-year fixed-rate mortgage also rose, averaging 6.04% compared to 5.98% last week.
The rise in mortgage rates followed a broader increase in bond yields. The 10-year U.S. Treasury bond yield closed at approximately 4.77% on Thursday. Investors have reportedly sold off bonds due to persistent inflation and rising fuel costs linked to the conflict in Iran, which began on March 1, 2026. Additionally, the U.S. national debt exceeded $40 trillion in August 2026.
Government officials have expressed differing views on interest rate policy, which indirectly affects mortgage costs. Vice President J.D. Vance stated Thursday that the administration favors a rate cut by the Federal Reserve to improve home affordability. However, Federal Reserve Chair Kevin Warsh indicated on August 28 that the Federal Open Market Committee (FOMC) remains focused on bringing inflation down to its 2% target, suggesting the possibility of further rate hikes.
On a concrete level, the change in rates impacts monthly housing expenses. Freddie Mac reports that purchase demand has remained relatively stable as buyers adapt. A 15-year mortgage, often used by those who plan to refinance, now carries a 6.04% average rate, matching the week ending July 30 for its highest rate since mid-February 2025.
The broader market anticipates further shifts as the FOMC prepares for its next meeting in mid-September. Financial markets, as measured by the CME Group’s FedWatch tool, currently show a 50% chance the Fed will maintain the current baseline interest rate range of 3.5% to 3.75%, and a 50% chance of a quarter-point increase. The next FOMC meeting is scheduled to occur in less than two weeks.