Average U.S. mortgage rate rises to 7.28%—the highest level in nearly three years

The average long-term U.S. mortgage rate increased to 7.28% this week, marking its highest level in nearly three years. The benchmark 30-year fixed-rate mortgage rose from 7.03% last week, according to Freddie Mac. This is the sixth consecutive week of rising mortgage rates. The average rate has not been this high since November 22, 2023.

Borrowing costs on 15-year fixed-rate mortgages also climbed, reaching 6.60% from 6.42% last week. Higher mortgage rates can add hundreds of dollars to monthly costs for borrowers, potentially limiting homebuyers' purchasing power and leading them to delay home purchases. The housing market has been stagnant this year due to elevated mortgage rates.

The 10-year Treasury yield, which influences mortgage rates, surged to 5.27% Thursday, back to levels seen in 2007 before the financial crisis. Mortgage applications and refinancing loans have decreased, with more borrowers opting for adjustable-rate mortgages.