Mortgage Rates Reach Highest Level in Over a Year
On Thursday, September 3, 2026, U.S. mortgage rates reached their highest level in over a year due to a global bond selloff and signals from the Federal Reserve that it may soon raise interest rates. The average 30-year fixed-rate mortgage hit 6.71%, according to Freddie Mac data — up slightly from the previous week’s 6.66%. Other measures, such as Mortgage News Daily's report of an average rate of 6.91% on Wednesday, showed even sharper increases. The rise in rates is closely tied to a surge in the yield on the 10-year Treasury note, which has climbed amid growing investor concerns about inflation remaining above the Fed’s target level. In a speech last week, Federal Reserve Chairman Kevin Warsh emphasized that reducing inflation remains the central bank's top priority and hinted at potential rate hikes as soon as mid-September. Traders are currently pricing in roughly 50% odds of a 25-basis-point increase during the Fed’s upcoming meeting. While the Fed does not directly control mortgage rates, its policy decisions significantly influence their direction.
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Topics: fed policy inflation mortgage rates