The average 30-year fixed mortgage rate climbed to 6.53% as higher borrowing costs and home prices pushed median monthly housing payments to an 11-month high.
By yourNEWS Media Newsroom
The average rate on a 30-year fixed mortgage rose again last week, reaching its highest level in nine months and adding pressure to homebuyers already facing elevated prices and monthly payments.
For the week ending May 27, the average 30-year fixed mortgage rate increased to 6.53%, up from 6.51% the previous week, according to Freddie Mac. The rate last stood above that level during the week ending Aug. 27, 2025.
Mortgage rates had fallen below 6% earlier this year, reaching 5.98% in late February, but have moved higher since then.
“Pending home sales have increased three months in a row, indicating there’s latent demand and homebuyers are ready to jump back into the market if mortgage rates decline,” Sam Khater, Freddie Mac’s chief economist, said.
Pending sales track signed contracts that have not yet closed, a process that can take several weeks or as long as two months. While the broader monthly trend has improved, more recent weekly data show renewed weakness.
Real estate brokerage Redfin said in a May 28 statement that pending home sales have declined for two consecutive weeks on a weekly basis. The company said higher mortgage rates and rising home prices have made purchases more expensive, pushing the median monthly housing payment to $2,637 for the four weeks ending May 24. That was the highest level in 11 months.
“I’m seeing a lot of house hunters who are what I call ‘tire kickers,’ meaning they’re serious about buying—but they’re cautious, waiting to see if mortgage rates decline or the economy improves,” Redfin agent Jason Gale said.
Redfin said the recent rise in mortgage rates has been driven by several factors, including the continuing U.S.-Iran war and concerns that the Federal Reserve could raise its benchmark interest rate again.
The Federal Reserve left interest rates unchanged in April for the third straight policy meeting, keeping the benchmark range at 3.5% to 3.75%. Minutes from that meeting showed that many officials believed rates could be raised if inflation remained above the central bank’s 2% target.
Inflation has moved higher in recent months. The 12-month inflation rate was 2.4% in February, then increased to 3.3% in March and 3.8% in April, according to Bureau of Labor Statistics data.
Higher inflation can lead the Federal Reserve to raise rates in an effort to slow price growth. Those increases can also contribute to higher mortgage rates, making monthly payments more expensive for prospective buyers.
The increase in mortgage costs comes as the Trump administration and lawmakers pursue several measures aimed at improving housing affordability.
Late last month, the Department of Housing and Urban Development and the Department of Agriculture rescinded a policy setting minimum energy standards for newly built single-family and multifamily properties. HUD said enforcing the standards would have added $20,000 to $31,000 to the cost of home construction, increasing prices for many first-time buyers.
Earlier this month, HUD also announced changes to certain environmental review requirements intended to reduce “costs and complexity” for multifamily property developers and lenders.
Congress has also moved on housing legislation. Last week, the House passed the 21st Century ROAD to Housing Act, a bill intended to improve housing affordability nationwide. The House Committee on Financial Services said the legislation would streamline housing development, remove burdensome regulations, encourage new construction and update outdated HUD programs.
“Homeownership is central to the American Dream. The American people elected Republicans into office because they were tired of this milestone getting further and further away from them,” Rep. Tom Emmer, R-Minn., said.
“By passing the 21st Century ROAD to Housing Act, we’re continuing to deliver wins for hardworking Americans.”
The bill now heads to the Senate.
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