September 10, 2026 | United States

Americans hoping to buy a home are facing another financial hurdle as mortgage rates climb to their highest level in more than a year.

The average rate on a 30-year fixed mortgage rose to 6.85% in the week ending September 4, according to data from the Mortgage Bankers Association reported by Reuters. The rate increased six basis points from the previous week and was last higher in June 2025.

Higher Rates Are Already Affecting Borrowers

The increase is having an immediate effect on the mortgage market.

Overall mortgage applications fell 2.7% from the previous week, while refinancing applications declined 6.2%, according to the MBA data.

For homebuyers, even a relatively small increase in mortgage rates can translate into a noticeably higher monthly payment, particularly on expensive properties.

Why Are Mortgage Rates Rising?

Mortgage rates are closely influenced by U.S. Treasury yields, which have been moving higher.

One major concern for financial markets is inflation. Rising oil prices connected with the conflict in the Middle East have added to worries that inflationary pressure could persist.

The benchmark 10-year Treasury yield has also approached 4.8%, Reuters reported, putting additional upward pressure on borrowing costs.

All Eyes Are Now on the Federal Reserve

The next few days could be important for American borrowers.

New U.S. inflation reports are due this week, and the figures could influence what the Federal Reserve decides at its September 15–16 policy meeting.

For prospective homebuyers, that means mortgage rates could remain a major factor in determining whether they can afford to enter the housing market this fall.

Source: Reuters / Mortgage Bankers Association — September 9, 2026.