Freddie Mac, a US government-sponsored housing finance agency, reported that the rate increased from 6.66% a week earlier. The latest reading is the highest since July 2025, making home financing more expensive for households already finding property purchases difficult.

US mortgage pricing generally moves with the yield on 10-year Treasury securities. That yield recently touched 4.818%, a peak not seen since late 2023. Concerns over government debt and funding demand from technology companies investing in artificial intelligence have contributed to rising yields. Meanwhile, fresh Middle East conflicts have lifted energy prices, adding inflation pressure.

US inflation has remained above the Federal Reserve’s 2% goal for more than five years, keeping pressure on the central bank to maintain high interest rates. Governor Christopher Waller indicated that a subdued next inflation reading could remove the need for another rate increase at the September meeting.

Waller also pointed to the strain on consumers, describing car purchases as increasingly hard to afford because of costly loans. Weakness in housing and vehicle markets suggests tighter policy is restraining activity, but households are bearing the cost. US inflation figures due in August will be important for the next policy decision and the outlook for global markets.