The average US 30-year fixed mortgage rate rose to 7.03%, its highest level since January 2025, intensifying the affordability challenge for prospective homebuyers. Freddie Mac said the rate increased from 6.95% a week earlier and 6.30% a year earlier, extending a five-week advance. The average 15-year fixed mortgage rate rose to 6.42% from 6.26% the prior week. Mortgage rates generally track the 10-year Treasury yield rather than the Federal Reserve's short-term policy rate. Treasury yields have risen as markets assess inflation, energy prices affected by the Iran war, tighter monetary policy and growing federal debt. The Mortgage Bankers Association separately reported a 7.12% average 30-year fixed rate for the week ending September 18. Zillow forecasts rates could ease to 6.7% by year-end and 6.3% by the end of 2027, although economists say the outlook depends heavily on inflation and the war's effect on oil markets.