30-year mortgage rate climbs above 7% as Treasury yields rise

The average rate on the benchmark 30-year fixed mortgage increased to 7.03% on Thursday, up from 6.95% the previous week, according to Freddie Mac's Primary Mortgage Market Survey. The 15-year fixed rate also rose, reaching 6.42% from 6.26%.

A year ago, the 30-year rate averaged 6.3%, indicating a notable upward trend. The movement follows a rise in the 10-year Treasury yield, which was around 5.1% on Thursday afternoon.

"Rates entered the week just 5 basis points below that line after jumping 19 basis points to 6.95%, the largest one-week move since April 2025," said Realtor.com senior economist Anthony Smith. "The 10-year Treasury yield drove most of that increase and has kept climbing, with inflationary pressure building and Brent crude oil prices hovering above $100 per barrel again. With the 10-year Treasury surging 15 bps on Wednesday, to 5.11 percent, a 19-year high, upward mortgage rate pressure seems likely to linger."

Mortgage rates are influenced by factors such as Federal Reserve policy, Treasury yields, and geopolitical developments, though they do not move directly with the Fed’s policy rate.