U.S. Mortgage Rates Hit 6.71%, Highest Level Since July 2015

[Financial News] U.S. mortgage rates have surged to their highest level in a year as instability in the U.S. bond market persists. The increase is adding to the burden on American consumers already struggling with continued high inflation and is expected to further worsen the severe stagnation in the housing market.
The New York Times (NYT) reported that Freddie Mac announced on September 3 (local time) that the average rate for the most common U.S. mortgage product, a 30-year fixed-rate mortgage, rose to 6.71% this week from 6.66% last week. This was the highest level in about one year and two months, since July 2025.
Mortgage rates are linked to the yield on 10-year U.S. Treasury bonds, which has been rising as investors grow concerned about fiscal deficits and high inflation.
The U.S. housing market has effectively been frozen for years as high home prices and elevated interest rates reinforce each other.
According to Cotality, a housing-market information provider, U.S. home prices rose 1.2% in May and then increased another 1.5% in June.
Real-estate appraisal and consulting expert Jonathan Miller analyzed the situation, saying, "Mortgage rates have risen at the steepest pace in history." He added, "Current rates have climbed to roughly twice the level seen during the COVID-19 pandemic."
Miller also said, "There is not enough housing inventory at present," identifying the shortage as a cause of rising home prices.
During the pandemic, most homeowners took out mortgages at rates below 3% a year, significantly reducing their monthly principal and interest payments. However, moving to a new home now would mean taking on a mortgage rate more than twice as high as before, sharply increasing housing costs. As a result, the lock-in effect has intensified, with homeowners choosing to remain in their existing homes to retain the benefits of low rates, NYT reported.
[email protected] Yoon Jae-jun Reporter