Freddie Mac’s latest Primary Mortgage Market Survey showed the average interest rate on the benchmark 30-year fixed mortgage<\/a> rose to 6.58% this week, up from 6.55% last week.<\/p>\n This week’s reading is the highest in about 11 months. The 30-year fixed mortgage rate was last at 6.58% Aug. 21, 2025. At this time a year ago, the rate was 6.74%.<\/p>\n HOUSING AFFORDABILITY TO IMPROVE AS HOME PRICE GROWTH COOLS, REALTOR.COM FORECASTS<\/a><\/p>\n An “Open House” sign in front of a home for sale in the Woodland Hills neighborhood of Los Angeles July 13, 2025.\u00a0 (Eric Thayer\/Bloomberg\/Getty Images \/ Getty Images)<\/p>\n “The 30-year fixed-rate mortgage averaged 6.58% this week,” said Freddie Mac Chief Economist Sam Khater.<\/p>\n “As market conditions continue to evolve, borrowers should remember that shopping around for a mortgage rate can make a meaningful difference, potentially saving them thousands over the loan’s lifetime.”<\/p>\n The average rate on a 15-year fixed mortgage<\/a> also moved higher to 5.96%, up from 5.93% last week. A year ago, the 15-year fixed mortgage had an average rate of 5.87%.<\/p>\n STARTER HOME AFFORDABILITY IS CRAWLING BACK. THESE REGIONS ARE BEST FOR FIRST-TIME BUYERS<\/a><\/p>\n Mortgage rates are affected by several factors, including the Federal Reserve<\/a> and geopolitics. Though mortgage rates are not directly affected by the Fed’s interest rate decisions, they closely track the 10-year Treasury yield. The 10-year yield rose slightly to 4.699% as of Thursday afternoon.<\/p>\n “While mortgage rates remain elevated, homebuyers may be better served focusing on the full cost of homeownership rather than trying to guess where rates will be a few months from now,” said Jeff DerGurahian, chief investment officer and head economist at LoanDepot.<\/p>\n “The tug-of-war between inflation and the renewed conflict between the U.S. and Iran is reflected in today’s rates, as higher oil prices raise concerns that elevated energy costs could filter into future inflation readings.”<\/p>\n RECORD DECLINE IN HOME ASKING PRICES OFFERS BUYERS AN AFFORDABILITY BOOST<\/a><\/p>\n A “New Listing” sign outside a home in Napa, Calif., May 6, 2024. (David Paul Morris\/Bloomberg via Getty Images \/ Getty Images)<\/p>\n The latest mortgage data comes as conditions in the housing market have improved somewhat for buyers, many of whom have been on the sidelines as tight inventory has supported higher home prices<\/a> and mortgage rates have held relatively steady.<\/p>\n Realtor.com recently released a midyear update to its 2026 housing market<\/a> forecast that estimates home price growth will slow to 1.2% this year, a rate that’s slower than the original forecast for the year and is below the current pace of inflation.\u00a0<\/p>\n That means home prices would be effectively declining in real, inflation-adjusted terms.<\/p>\n![\"A](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2026\/07\/1784870235_457_for-sale-home.png\")
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