U.S. mortgage rates top 7% as housing costs stay elevated

WASHINGTON — The average U.S. 30-year fixed mortgage rate rose to 7.03% as of Thursday, up from 6.30% a year earlier, The Korea Times reported, citing Freddie Mac data.

The increase adds pressure to buyers already facing elevated borrowing costs and inflation. The Korea Times did not report Orange County-specific figures, but national mortgage trends can shape affordability in high-cost housing markets.

The Korea Times reported that Freddie Mac data showed the 30-year fixed-rate average was at its highest level since Jan. 16 last year. The rate is a key benchmark for many U.S. homebuyers and has remained elevated since the COVID-19 pandemic period.

The report linked the latest mortgage pressure to broader inflation concerns and a recent U.S. central bank rate increase. The central bank raised rates this month for the first time since 2023, according to The Korea Times.

The Korea Times also cited higher fuel prices tied to Middle East conflict following U.S.-Israel strikes on Iran as part of the cost backdrop for households and businesses. Those expenses have contributed to wider cost-of-living concerns before the midterm election cycle.

Despite higher borrowing costs, new U.S. home sales rose in August. Commerce Department data cited by The Korea Times showed sales increased 6.4% from the previous month to a seasonally adjusted annual rate of 684,000.

August sales, however, remained 2.0% below the level from August 2025, according to the same Commerce Department figures cited by The Korea Times.

The figures point to a housing market still balancing buyer demand against higher financing costs.