Average US 30-year mortgage rate rises to 6.71% — MarketWatch
In the United States, the average rate on a 30-year mortgage rose by 5 basis points to 6.71%. This is the highest level since late July 2025, according to Freddie Mac data, MarketWatch reports.
Even an increase of several basis points can raise homebuyers’ costs by several hundred dollars. A separate daily survey of lenders by Mortgage News Daily showed that as of September 2, the average rate on a 30-year mortgage stood at 6.91%.
The rate may reach 7%
Former mortgage-backed securities trader and Sotheby’s International Realty executive Jim Bell expects the average rate on a 30-year fixed mortgage to reach 7% in September. According to him, this would not require a significant move in the bond market. Michael Reed, principal of Bridgeway Mortgage and Real Estate Services, also noted that most loans are still priced below 7%, but the market is approaching that level.
Mortgage rates are sensitive to political news and move in line with yields on 10-year US Treasury bonds. As MarketWatch notes, their yields rose during the previous week amid a new escalation of the conflict between the United States and Iran, higher oil prices, and a possible interest-rate hike by the Federal Reserve to curb inflation.
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Borrowers choose adjustable rates
Bell noted that more and more buyers are switching to adjustable-rate mortgages to reduce initial monthly payments. According to the Mortgage Bankers Association, at the beginning of September, the share of homebuyers choosing such loans instead of conventional mortgages rose to a five-week high.
Adjustable-rate mortgages usually start with a lower interest rate, but the rate and monthly payments may change later. Jason Madiedo, co-head of lender SimplyPMG, said that offers above 7% are already being received by borrowers with low credit scores, smaller down payments, or non-standard personal circumstances. Borrowers with higher credit scores, larger down payments, and stable financial situations are more likely to qualify for a rate below 7%.
Realtor.com senior economist Jiayi Xu does not expect significant relief in mortgage rates this fall. Bright MLS chief economist Lisa Sturtevant noted that for housing affordability to return to 2019 levels, the median home price would have to fall by more than 30%, or the rate on a 30-year mortgage would have to decline to 3%.
