US Mortgage Rates Jump to 5.89%: Highest Since 2025

U.S. mortgage rates have surged, hitting levels not seen since 2025, significantly impacting affordability and potentially deepening the ongoing housing slowdown. According to new data published Thursday by Freddie Mac, the average 30-year mortgage rate climbed to 5.89%, marking the highest level since 2025. This rise marks the third consecutive week of increases, according to various reports.

Why are mortgage rates so high?

These climbing rates are largely attributed to the housing market bracing itself for the Federal Reserve to implement further interest rate hikes. As a result, U.S. mortgage rates continue to rise, pushing even more would-be buyers out of the market, as highlighted in multiple reports dated 8 de sept. de 2025. Mortgage buyer Freddie Mac reported Thursday, 8 de sept. de 2025, that the 30-year rate jumped to 5.89% from 5.66% last week. This represents a substantial increase and further constrains potential homebuyers.

Impact on the Housing Market

The surge in mortgage rates is squeezing affordability, contributing to the housing slowdown. The increased cost of borrowing makes purchasing a home more challenging for many, potentially leading to a decrease in demand and a cooling off of the previously hot housing market. Rates in the United States have risen for the third week in a row, according to reports. The average for a 30-year loan increased to 5.89%, up from 5.66% last week, which means finding affordable options for prospective buyers is now harder than it was in recent weeks.

What to Expect Next

With expectations of further interest rate hikes from the Federal Reserve, it's likely that mortgage rates will remain elevated in the near future. Keep an eye on further reports from Freddie Mac and other financial institutions for the latest updates on mortgage rates and the housing market. Stay informed to make the best decisions regarding your home buying or selling strategy in this evolving economic climate.