US Housing Affordability Is 'Deteriorating Again' as Mortgage Rates Hit 11-Month High— Top Economist Says 'Shopping Around Can Save You Thousands...'

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U.S. mortgage rates climbed to their highest level in about 11 months this week, adding pressure on homebuyers as housing prices remain near record levels.

The average rate on a 30-year fixed mortgage rose to 6.58% from 6.55% a week earlier, according to Freddie Mac's latest Primary Mortgage Market Survey released Thursday. The rate was last at 6.58% on Aug. 21, 2025, and stood at 6.74% a year ago.

The average 15-year fixed mortgage rate also increased to 5.96% from 5.93% the previous week. It averaged 5.87% a year earlier.

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"Borrowers should remember that shopping around for a mortgage rate can make a meaningful difference, potentially saving them thousands over the loan's lifetime," Freddie Mac Chief Economist Sam Khater said.

Prices Hit Record

The Kobeissi Letter, in a post on X, citing data from Redfin, said the median U.S. home-sale price rose 2.2% year over year in June to a record $408,776, while existing-home sales increased 4.2% from a year earlier.

"US housing affordability is deteriorating again," the market commentator said.

BREAKING: The median sale price of existing US homes increased +2.2% YoY in June to a record $408,776.

San Francisco led the increase at +9.2% YoY, followed by Pittsburgh at +9.1%, and West Palm Beach at +8.6%, with luxury purchases driving much of the gain.

San Francisco and… pic.twitter.com/jGZ2zHgfre

— The Kobeissi Letter (@KobeissiLetter) July 23, 2026

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Redfin's data showed existing-home sales increased 4.2% year over year to a seasonally adjusted annual rate of roughly 4.4 million, the highest since November 2022. New listings, however, declined 0.8% month over month to 376,762, their lowest level since December.
San Francisco recorded the largest annual price increase among major metros at 9.2%, followed by Pittsburgh at 9.1% and West Palm Beach at 8.6%. West Palm Beach and San Francisco also led gains in closed home sales, rising 23.8% and 23.1%, respectively.

Affordability Squeezed

Elevated borrowing costs have continued to weigh on prospective buyers. HousingWire Lead Analyst Logan Mohtashami said mortgage rates have remained largely within a 6.5% to 6.75% range, with Federal Reserve messaging and geopolitical uncertainty helping keep long-term borrowing costs elevated. Mortgage Bankers Association data showed purchase applications fell 7% as the 30-year contract rate climbed to 6.65%.