Mortgage Rates Surge to Highest Level in Over a Year

Marcus Lemonis contends that soaring home prices stem mainly from insufficient housing supply, not merely regulatory constraints. He stresses that required permits and safety inspections are essential and doubts that eliminating red‑tape would markedly reduce prices.

Freddie Mac reported that mortgage rates rose again this week, reaching the highest level in almost a year.

According to Freddie Mac’s latest Primary Mortgage Market Survey, the average rate on a 30‑year fixed‑rate mortgage rose to 6.58% this week, up from 6.55% the previous week.

This figure marks the peak over the past 11 months; the rate was last recorded at 6.58% on August 21, 2025, compared with 6.74% a year earlier.

HOUSING AFFORDABILITY TO IMPROVE AS HOME PRICE GROWTH COOLS, REALTOR.COM FORECASTS

An “Open House” sign placed before a home for sale in the Woodland Hills neighborhood of Los Angeles, California, dated July 13 2025. (Eric Thayer/Bloomberg/Getty Images / Getty Images)

“The 30-year fixed-rate mortgage averaged 6.58% this week,” said Freddie Mac chief economist Sam Khater.

He added that borrowers should compare offers from multiple lenders, as even small rate differences can result in substantial savings over the life of a loan.

The average rate on a 15-year fixed mortgage also moved higher to 5.96%, up from 5.93% a week earlier, and remains higher than the 5.87% recorded a year ago.

STARTER HOME AFFORDABILITY IS CRAWLING BACK. THESE REGIONS ARE BEST FOR FIRST-TIME BUYERS

Mortgage rates are influenced by a range of factors, including Federal Reserve policy and geopolitical developments. While the Fed’s policy rate does not directly set mortgage rates, they closely follow the 10‑year Treasury yield, which edged up to 4.699% on Thursday afternoon.

Jeff DerGurahian, chief investment officer and chief economist at LoanDepot, advised, “Even with rates staying high, prospective buyers should concentrate on the total cost of ownership rather than speculating about future rate movements.”

He observed that the tension between inflation pressures and renewed U.S.–Iran tensions, reflected in rising oil prices, could push energy costs higher and subsequently influence inflation readings.

RECORD DECLINE IN HOME ASKING PRICES OFFERS BUYERS AN AFFORDABILITY BOOST

A “New Listing” sign outside a home in Napa, California, United States, on Monday, May 6 2024. (David Paul Morris/Bloomberg via Getty Images / Getty Images)

The latest mortgage data arrives as housing market conditions have improved modestly for buyers, who have largely remained on the sidelines while limited inventory has supported higher home prices and relatively steady rates.

Realtor.com’s mid‑year update to its 2026 housing outlook forecasts 2025 home price growth of 1.2%, slower than earlier projections and below inflation, indicating a decline in real, inflation‑adjusted terms.

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