Mortgage rates have climbed to their highest level in nearly a year, cooling homebuyer demand at a time when elevated home prices and a shortage of affordable listings continue to weigh on the U.S. housing market.
The average interest rate for a 30-year fixed-rate mortgage increased to 6.65% last week, the highest level since August 2025, according to data released Wednesday by the Mortgage Bankers Association (MBA). The rise in borrowing costs contributed to a decline in overall mortgage demand, particularly among prospective homebuyers, even as refinancing activity posted modest gains.
