Freddie Mac data shows 30-year fixed mortgage rates rise 30 basis points in five weeks, dampening borrower demand and refinancing activity.
The average 30-year fixed-rate mortgage climbed to 6.53% for the week ending May 28, marking its highest level since August 2025. The increase of 30 basis points over the past five weeks has pushed rates to levels last seen nearly nine months ago.
A year ago, the 30-year rate stood at 6.89%, while the 15-year fixed-rate mortgage averaged 5.87%, up slightly from the prior week. Elevated rates have weighed on borrower activity, with overall mortgage application volume dropping 8.5% week over week, according to industry data.
Refinance applications plunged 18%, and purchase applications slipped 0.4%, with VA loans seeing the steepest decline at 34%. The average purchase loan size reached a record $473,600 as borrowers with smaller balances retreated from the market.