Freddie Mac Mortgage Rate Reaches 7.03%

Freddie Mac reported Thursday that the average rate on a 30-year fixed mortgage rose to 7.03%, its fifth consecutive weekly increase and its highest reading since January 2025. The rate was 6.95% a week earlier and 6.30% a year ago, according to the company’s weekly survey. The rise marks the first time the survey’s average has topped 7% since January 2025. Freddie Mac’s separate average for 15-year fixed mortgages also increased, reaching 6.42% from 6.26% the previous week and 5.49% a year earlier. A separate Mortgage Bankers Association survey measured the 30-year rate at 7.12% for the week ended September 18. The two figures come from different surveys and periods and are not directly interchangeable. The association also reported that adjustable-rate mortgages accounted for 9.8% of applications in its survey. Higher borrowing costs can reduce the amount prospective buyers qualify to borrow and add to monthly payments. One report illustrated the change by estimating that a borrower financing a $400,000 loan at the current average would pay about $276 more per month than at the 5.98% rate recorded in late February.