U.S. 30-Year Mortgage Rate Reaches 7.28%

Freddie Mac said Thursday that the typical U.S. rate for a fixed 30-year mortgage reached 7.28% this week. It was 7.03% one week earlier and 6.34% a year earlier. Rates have risen for six weeks in a row, and this week’s increase was the largest in four years. The average has not been this high since Nov. 22, 2023, when it stood at 7.29%.

The 15-year fixed average, frequently used for refinancing, moved from 6.42% last week to 6.60%. One year earlier, it was 5.55%. For a Simi Valley household borrowing $400,000, the roughly one-point rise in the 30-year average since its late-February low of 5.98% works out to about $276 more each month. The rate offered to an individual borrower can differ based on income, credit and other considerations.

The higher costs are weighing on housing activity. Mortgage applications for purchases and refinancing fell 6% last week, their fourth weekly decline. Adjustable-rate loans represented more than 10% of applications as borrowers sought their generally lower introductory rates. Existing-home sales also dropped 2% from July to August, reaching an annualized pace of 3.98 million after seasonal adjustment. For local homeowners considering refinancing, parents planning a move or commuters comparing neighborhoods, the rate increase means less buying power and potentially higher monthly payments.