Mortgage rates top 7% for first time since January 2025 in blow to homebuyers

The average long-term US mortgage rate rose this week above 7% for the first time since January 2025, the latest affordability setback for prospective homebuyers following a five-week run of rate increases.The weekly average rate on a 30-year fixed-rate home loan rose to 7.03% from 6.95% last week, mortgage buyer Freddie Mac said Thursday.One year ago, the average rate was 6.30%.The average rate is now the highest its been since Jan.

16, 2025, when it was at 7.04%.Borrowing costs on 15-year fixed-rate mortgages, often sought by borrowers refinancing a home loan, also rose this week.That average rate increased to 6.42% from 6.26% last week.

A year ago, it was at 5.49%.Higher mortgage rates can add hundreds of dollars a month to borrowers’ costs, limiting homebuyers’ purchasing power.As rates rise, that can also lead prospective home shoppers to delay buying.This is a developing story.

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