US Mortgage Rates Hit 13-Month High...Vance Urges Fed to Cut Rates

30-Year Fixed Rate Reaches 6.71%
Long-Term Yields Climb on Iran Conflict and Fiscal Concerns
Vance: "A Responsible Response to Help Americans Buy Homes"

The average interest rate for 30-year fixed-rate mortgages in the United States has risen to its highest level in 13 months, prompting U.S. Vice President JD Vance to urge the Federal Reserve (Fed) to lower its benchmark interest rate in order to ease the burden of home purchases.

According to Freddie Mac, a U.S. government-sponsored mortgage lender, as of the 3rd (local time), the average rate for 30-year fixed-rate mortgages in the U.S. stood at 6.71%, up 0.06 percentage points from the previous week’s 6.66%. This marks the highest level since July 31, 2025, when it reached 6.72%, making it the highest in about 13 months. Compared to a year ago, when it was 6.50%, the rate has increased by 0.21 percentage points.

The average rate for 15-year fixed-rate mortgages also rose from 5.98% last week to 6.04%. During the same period last year, the rate was 5.60%. Freddie Mac assessed that home purchase demand remains relatively stable and that buyers are adapting to the changing market conditions.

At a White House press briefing, Vice President Vance was asked about recent volatility in the U.S. Treasury market and responded, “It’s clear that the President is paying close attention to interest rates.” He added, “One of the main reasons is to ensure that Americans can afford to buy homes.”

He emphasized, “When rates rise, borrowing costs also increase,” and continued, “We believe the Fed should cut rates.” Considering recent trends in U.S. inflation, he stated that a rate cut would be “an appropriate and responsible response.”

However, U.S. mortgage rates are influenced more by long-term market rates, such as the 10-year U.S. Treasury yield, than by the Fed’s benchmark rate. Recently, U.S. long-term Treasury yields have surged, driven by rising international oil prices amid military clashes between the United States and Iran, which have heightened concerns about a resurgence in inflation. In addition to oil prices, the huge U.S. government fiscal deficit and demand for funding related to artificial intelligence (AI) infrastructure investment have also put upward pressure on long-term interest rates. As a result, the 10-year Treasury yield climbed as high as 4.818% during the previous day’s session, the highest since November 2023.

In this context, Federal Reserve Governor Christopher Waller suggested at a Reuters event that he may support keeping rates unchanged at the September meeting, citing recent signs of disinflation. Following Waller’s comments, the 10-year U.S. Treasury yield fell into the 4.74% range.

This content was produced with the assistance of AI translation services.