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Mortgage rates kick off 2025 with an increase, nearing 7%

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Mortgage rates are up for a third straight week to the highest since July, further hindering demand in the already-stagnant housing market.

Freddie Mac's latest Primary Mortgage Market Survey, released Thursday, showed that the average rate on the benchmark 30-year fixed mortgage jumped to 6.91%, up from last week's reading of 6.85%. The average rate on a 30-year loan was 6.62% a year ago.

"Inching up to just shy of seven percent, mortgage rates reached their highest point in nearly six months," said Sam Khater, Freddie Mac’s chief economist. "Compared to this time last year, rates are elevated and the market’s affordability headwinds persist."

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The average rate on the 15-year fixed mortgage climbed to 6.13% from 6.0% last week. One year ago, the rate on the 15-year fixed note averaged 5.89%.




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