U.S. mortgage rates rise to highest level since 2023

The average U.S. rate on a 30-year fixed mortgage rose to 7.28% this week, up from 7.03% a week earlier, according to Freddie Mac. It was the sixth consecutive weekly increase, the largest one-week jump in nearly four years and the highest level since November 2023. The average stood at 6.34% a year ago.

The increase is raising monthly borrowing costs. Rates on 15-year fixed mortgages, often used by homeowners refinancing existing loans, also climbed.

Mortgage rates have followed a sharp rise in Treasury yields amid a bond-market selloff. According to NBC News, the 10-year Treasury yield reached 5.34% in early Thursday trading, while the 30-year yield climbed as high as 5.69%. Investors have been responding to inflation concerns tied to higher energy prices and increased government spending. NBC News reported that September reports from S&P Global and the Institute for Supply Management also indicated growing cost pressures for businesses.

Some borrowers are turning to alternatives to conventional 30-year fixed loans. Adjustable-rate mortgages recently accounted for 10.3% of applications, their highest share since October 2025, the Mortgage Bankers Association said. Those loans carried rates about 0.8 percentage points below fixed-rate mortgages, but payments can rise after the initial fixed period. Shorter-term mortgages may also offer lower rates, though they can involve higher monthly payments. Assumable government-backed mortgages can involve longer approval processes.