US mortgage rates have jumped for a fourth consecutive week, reaching a six-month high and potentially dampening the crucial spring selling season. The average rate for 30-year, fixed loans climbed to 6.38%, the highest since September 2025, according to data from Freddie Mac.
At the current 30-year average, borrowers with a $1 million loan would pay approximately $6,242 a month, excluding insurance and taxes. This is a significant increase from $5,983 in late February, when rates briefly dipped below 6% before the Iran war began.
The spike in rates adds another reason for buyers to hesitate, compounding worries about the high cost of living, including gas and groceries, as well as the prospect of AI taking their jobs. Home builders are already showing signs of concern, with KB Home lowering its full-year guidance for closings due to the Iran war.
Despite borrowing costs still being below the 6.65% average a year ago, the gap is shrinking. The weak housing market could give some buyers negotiating power, as long as they have the income and fortitude to proceed, according to Redfin Principal Economist Sheharyar Bokhari.
