US Mortgage Rates Rise to 13-Month High at 6.71%

Washington, DC, USA | September 7, 2026

US mortgage rates have moved higher, with the average 30-year fixed mortgage rate reaching 6.71% for the week ending September 3, 2026. The rate rose from 6.66% a week earlier and reached its highest level since late July 2025.

Mortgage Rates Come Under Fresh Pressure

The latest increase comes as financial markets respond to renewed inflation concerns and changing expectations around Federal Reserve policy. Higher bond yields have also pushed mortgage borrowing costs upward, with the 10-year Treasury yield remaining an important benchmark for mortgage rates.

Strong Jobs Data Adds to Rate Uncertainty

The latest US employment report showed that nonfarm payroll employment increased by 162,000 in August, while the unemployment rate remained at 4.1%. The stronger-than-expected job growth has increased expectations that the Federal Reserve could maintain a tighter policy stance for longer.

 

Borrowing Costs Remain a Concern for Homebuyers

At 6.71%, mortgage rates remain significantly higher than they were earlier in 2026. The rate stood at 6.43% in early July before gradually moving higher.

Higher borrowing costs can increase monthly payments for homebuyers and may influence affordability, purchasing decisions and housing demand.

Housing Market Could Face Continued Affordability Pressure

With mortgage rates remaining elevated, buyers may become more cautious about taking on larger home loans. Developers and sellers could also face pressure if financing costs remain high and buyers become more sensitive to overall housing affordability.

The direction of mortgage rates in the coming weeks will depend heavily on inflation data, Treasury yields and expectations for the Federal Reserve's next policy decisions.