The average 30-year fixed mortgage rate rose to 6.76% this week, up from 6.71% a week earlier.
Rates are also considerably higher than a year ago, when the 30-year mortgage averaged 6.35%.
Freddie Mac says borrowers may be able to save thousands of dollars by shopping around and getting quotes from multiple lenders.
Mortgage rates moved higher again this week, continuing a September increase that could make it harder for some prospective buyers to afford a home.
Freddie Mac's latest Primary Mortgage Market Survey shows the average rate on a 30-year fixed-rate mortgage climbed to 6.76% as of Sept. 10, up from 6.71% last week. One year ago, the average was 6.35%.
The average rate on a 15-year fixed mortgage also increased, rising to 6.09% from 6.04% last week. A year ago, the 15-year mortgage averaged 5.50%.
It marks the second consecutive weekly increase in the benchmark 30-year rate. The rate was 6.66% on Aug. 27 before rising to 6.71% on Sept. 3 and 6.76% this week.
That puts mortgage rates more than three-quarters of a percentage point above their 2026 low. The 30-year rate dipped as low as 5.98% in late February before generally trending higher during the spring and summer.
Mortgage rates are rising in tandem with bond yields. The U.S. Treasury finds it has to pay more interest for investors to buy U.S. debt.
What higher rates mean for buyers
The difference between a mortgage rate in the low-6% range and one approaching 7% can have a noticeable effect on a buyer's monthly payment.
For example, on a $400,000, 30-year mortgage, principal and interest at 6.76% would be roughly $2,596 a month. At 6.35%, the rate prevailing a year ago, the payment would be about $2,489.
That's a difference of roughly $107 a month, or nearly $1,300 a year. The calculation doesn't include property taxes, homeowners insurance or homeowners association fees.
Higher rates can also reduce buying power. Buyers who need to stay below a particular monthly payment may have to make a larger down payment or shop for a less expensive home.
Shopping around could pay off
Freddie Mac Chief Economist Sam Khater emphasized that the national average isn't necessarily the rate every borrower will receive.
“Aspiring buyers should remember shopping around for the best mortgage rate and getting multiple quotes can potentially save them thousands,” Khater said.
Actual rates vary depending on factors such as credit history, loan size, down payment and lender. Freddie Mac's survey focuses on conventional, conforming home-purchase loans for borrowers with excellent credit who put 20% down.
That makes comparing offers particularly important when rates are elevated. Even a quarter-point difference can translate into significant savings over the life of a 30-year loan.