Mortgage Bankers Association weekly applications survey

US 30-Year Fixed Mortgage Rates Rise to 6.93% for Fourth Week, Driven by 10-Year Treasury Yield

Jan 9, 2025, 05:42 PM

The average 30-year fixed-rate mortgage in the U.S. increased to 6.93% for the week ending January 9, 2025, marking the fourth consecutive week of rises, according to Freddie Mac. This rate is up from 6.91% the previous week and represents the highest level since July, when it stood at 6.66% a year ago. The increase in mortgage rates reflects a rise in the yield on the 10-year U.S. Treasury, which has climbed from 3.62% in mid-September to 4.66% this week. The 15-year fixed rate also rose to 6.14%, up from 5.87% a year ago. The uptick in rates, coupled with steadily rising home prices, continues to challenge home affordability, impacting potential homebuyers. Despite these challenges, there has been an increase in both pending and existing-home sales activity, with homeowners leveraging housing equity gains to offset higher rates. However, the rise in rates has led to a decline in mortgage applications, particularly among first-time buyers who are more sensitive to rate changes. This trend persists despite Federal Reserve rate cuts.