The average rate on 30-year fixed mortgages soared to 6.95% for the week ending Sept. 17, up 19 basis points from last week.
Mortgage rates reached their highest level in nearly 18 months, driven by climbing Treasury yields that hit a level not seen since 2007 ahead of the Federal Reserve’s rate increase decision.
The average rate on 30-year fixed home loans jumped to 6.95% for the week ending Sept. 17, up 19 basis points from 6.76% the previous week and the highest since late June 2025, according to Freddie Mac. For perspective, rates averaged 6.26% one year ago.
This marks the biggest one-week rate increase since April 2025, when the economy was roiled by President Donald Trump's tariff policies.
"The 30-year fixed-rate mortgage continues to fluctuate as markets assess economic data," says Sam Khater, Freddie Mac's chief economist.
The primary catalyst for the surge is rising 10-year Treasury yields, which climbed to their highest levels in 19 years, topping 5% on Tuesday in anticipation of Wednesday’s 12-0 vote by the Federal Open Market Committee (FOMC) members to increase the benchmark interest rate.
The quarter percentage point hike—the first increase in three years—brings the federal funds rate to a range of 3.75% to 4% in an attempt to rein in inflation fueled by high oil prices resulting from the ongoing war in Iran.
Since the outbreak of the conflict in February, mortgage rates have increased over 90 basis points. Looking at the year-over-year data, rates are running more than 60 basis points above 2025 levels.
It’s important to note that the Fed rate hike has no bearing on today’s Freddie Mac number, which is an average of mortgage rates over the past week.
"We will get a much better sense of if and how any Fed move feeds through to mortgage rates next week and beyond," says Realtor.com® senior economist Jake Krimmel.
For homebuyers and sellers, the highest mortgage rates in over a year are landing on a housing market that is already in a slump. Existing home sales hit their 2026 low in August, pending sales have turned negative year over year, and purchase applications are down 19% from a year ago.
“For buyers, the pace of the mortgage rate increase means they’re facing an uphill climb exactly at the time of year when leverage really shifts more in their favor,” says Krimmel. “For sellers, the question now is whether they respond by slashing prices or delisting their home altogether. Regardless, rates approaching 7% mean the stall in fall could come early this year.”
How your credit score affects your mortgage
Your credit score plays a role when you apply for a mortgage. A credit score will determine whether you qualify for a mortgage and the interest rate you'll receive. The higher the credit score, the lower the interest rate you'll qualify for.
The credit score you need will vary depending on the type of loan. A score of 620 is a "fair" rating. However, people applying for a Federal Housing Administration loan might be able to get approved with a credit score of 500, which is considered a low score.
Homebuyers with credit scores of 740 or higher are typically considered to be in very good standing and can usually qualify for better rates, which can reduce monthly payments.
Different types of mortgage loan programs have their own minimum credit score requirements. Some lenders have stricter criteria when evaluating whether to approve a loan. Ultimately, they want to make sure you're able to pay back the loan.