Mortgage Rates Surge Above 6.9 Percent Ahead of Fed Rate Hike

Less than four months after Kevin Warsh took over as chairman of the Federal Reserve, mortgage rates have begun to rise again. The average 30-year fixed mortgage rate has climbed to 6.97 percent, according to Mortgage News Daily, an increase of 8 basis points from the previous day.

This brings borrowing costs back to levels not seen in more than a year, erasing much of the relief buyers had gained as mortgage rates retreated from their 2025 highs.

The move is largely due to market expectations that the Federal Reserve will raise interest rates at its upcoming meeting on September 15-16. The producer price index showed wholesale prices rising 5.4 percent from a year earlier, which has strengthened expectations of a rate hike.

Freddie Mac's weekly Primary Mortgage Market Survey has not yet caught up with this week's move, but mortgage rates are now at their highest level since May 2025.