The 30 year fixed rate mortgage according to Freddie Mac reached 6.58% in the week ending July 23. That is the highest level since August 21, 2025. Last week, the rate was at 6.55%. The good news is a year ago the rate was at 6.74%
- The 15-year fixed-rate mortgage averaged 5.96%, up from last week when it averaged 5.93%. A year ago at this time, the 15-year FRM averaged 5.87%. The rate is the highest since June 18, 2025
Affordabilty, remains an issue for new homebuyers. This does not help.
The low 30 year yield was at 5.98% earlier this year.
For a $500,000 30-year fixed mortgage (principal and interest only, excluding taxes, insurance, HOA, etc.):
Difference:
- Monthly increase: ≈ $195.37
- Annual increase: ≈ $2,345
- Over the full 30 years: ≈ $70,333 in additional payments (assuming the loan is held for the full term).
A 0.60 percentage point increase in mortgage rates (from 5.98% to 6.58%) raises the monthly payment on a $500,000 loan by about $195, which can have a meaningful impact on affordability for prospective homebuyers.
This article was written by Greg Michalowski at investinglive.com.