The average 30-year fixed mortgage rate in the United States rose to 6.87% on Monday (August 31), reaching the highest level since June 2025.
According to the latest data from the Mortgage News Daily, a popular source for mortgage news, the average rate for the 30-year fixed mortgage increased by 6 basis points (0.06%) on Monday to 6.87%, reaching the highest level in over a year.
Since last Thursday, the rate has risen by 12 basis points, accumulating an increase of over 30 basis points in the past two months.
The average rate for a 15-year fixed mortgage rose to 6.38%, up 3 basis points from the previous trading day.
Data from Freddie Mac, a U.S. housing mortgage financing agency, shows that mortgage rates have increased significantly since the outbreak of the Iran war, which led to a rise in oil prices. The current level is nearly 70 basis points higher than at the end of February. The average rate for a 30-year fixed mortgage was 5.99% at the end of February, the day before the Iran war began.
Mortgage rates are influenced by multiple factors, including the Federal Reserve’s rate policies, investors’ expectations of the economy and inflation in the bond market. The trend usually follows the 10-year Treasury yield, which is an important benchmark for mortgage pricing by lending institutions.
As of Monday afternoon, the 10-year Treasury yield was hovering around 4.76%.
Matthew Graham, Chief Operating Officer of Mortgage News Daily, commented, “While rates are technically at their highest level in over a year, there hasn’t been an unexpectedly sharp spike. Instead, this seems more like a slow rise driven by common suspects: inflation expectations, increased bond issuance, economic resilience. Each of these factors is likely to undergo some changes in the future.”
According to data compiled by The Wall Street Journal, the average rate for a 30-year fixed mortgage was 4.72% at the beginning of 2022 and soared to a recent peak of 7.79% by the end of 2023.
Following several drastic rate fluctuations, mortgage rates showed a downward trend in the middle of 2025. This trend continued until the end of February 2026 when rates dropped below 6.00%, reaching the lowest level in over three years.
However, after the outbreak of the Iran war, mortgage rates began to rise significantly. Throughout May, June, and part of July, rates remained in the range of 6.40% to 6.50%, but by the end of July, they surged to the range of 6.70% to 6.80%.