Mortgage rates climb for the fifth consecutive week, pushing the average 30-year fixed loan back above 7% and adding fresh pressure on home affordability for buyers in Hawaiʻi and across the country.
Freddie Mac reported Thursday that the average rate on a 30-year fixed mortgage rose to 7.03%, up from 6.95% a week earlier. One year ago, the average stood at 6.30%.
The benchmark rate is now at its highest level since January 16, 2025, when it reached 7.04%, according to the mortgage buyer.
Shorter-term borrowing costs also increased. The average rate on a 15-year fixed mortgage, a common option for homeowners refinancing, climbed to 6.42% from 6.26% the prior week. A year ago, that average was 5.49%.
Higher mortgage rates can add hundreds of dollars to monthly payments, reducing purchasing power and prompting some would-be buyers to wait. In Hawaiʻi’s already high-cost housing market, even small rate moves can significantly affect what households can afford.
Mortgage rates climb past 7% again
As borrowing costs rise, real estate professionals say demand can cool as budgets are squeezed. For local buyers considering a purchase or refinance, lenders recommend comparing offers, checking points and fees, and watching rate movements closely.
Housing advocates note that higher borrowing costs can intensify pressure on renters as well as buyers, especially when incomes fail to keep pace with rising payments and other expenses, similar to trends seen with more middle-income renters falling behind on payments.
Freddie Mac, the government-sponsored enterprise that tracks average mortgage rates, publishes its weekly survey and related market analysis on its official Freddie Mac website.
Prospective Hawaiʻi homebuyers and homeowners can also monitor broader interest rate policy and economic forecasts through the Federal Reserve, which influences borrowing costs across the mortgage market.
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