The average long-term U.S. mortgage rate climbed this week to its highest level in nearly 12 months, pushing up borrowing costs for prospective homebuyers at a time when rising oil prices are already squeezing household budgets.
The benchmark 30-year fixed rate mortgage rate rose to 6.58% from 6.55% last week, mortgage buyer Freddie Mac said Thursday. One year ago, the average rate was 6.74%.
The rate has ticked higher three weeks in a row. Higher mortgage rates can add hundreds of dollars a month in costs for borrowers, limiting homebuyers’ purchasing power. As rates rise, that can lead prospective home shoppers to delay buying a home, one reason U.S. home sales have been sluggish this year.
Borrowing costs on 15-year fixed-rate mortgages, often sought by borrowers refinancing a home loan, also rose this week. That average rate increased to 5.96% from 5.93% last week. A year ago, it was at 5.87%, Freddie Mac said.
Mortgage rates are influenced by several factors, from the Federal Reserve’s interest rate policy decisions to bond market investors’ expectations for the economy and inflation. They generally follow the trajectory of the 10-year Treasury yield, which lenders use as a guide to pricing home loans.
Rates have been mostly rising this year as the conflict in Iran has driven crude oil prices sharply higher, stoking expectations of hotter inflation. That’s pushed up long-term bond yields relative to where they were before the conflict began in late February, causing mortgage rates to trend higher.
The 10-year Treasury yield was 4.7% at midday Thursday on the bond market, up from 4.57% a week ago. It was just 3.97% in late February, before the war broke out.
Rising oil prices as violence escalates in Iran are threatening to worsen inflation, just as it had begun to decelerate by more than economists expected. That in turn could push the Federal Reserve to raise interest rates.
The central bank doesn’t set mortgage rates, but its decisions to raise or lower its short-term rate are watched closely by bond investors and can ultimately affect the yield on 10-year Treasurys.
The average rate on a 30-year mortgage is now the highest it’s been since Aug. 21, when it was at 6.58%. As recently as late February, the average rate dropped slightly below 6% for the first time since late 2022.
While average long-term mortgage rates remain lower than they were at this time last year, their upward trajectory has weighed on home sales this year. While seasonally adjusted sales of previously occupied U.S. homes were up 0.7% from January to June compared to the same period last year, they're still hovering close to a 4-million annual pace far short of the historic norm that is closer to 5.2-million.
The trend has extended the national housing market slump that began in 2022, when mortgage rates began to climb from pandemic-era lows. Sales of previously occupied U.S. homes were essentially flat last year, stuck at a 30-year low.
As mortgage rates remain elevated, that will mean a slower summer housing market, said Lisa Sturtevant, chief economist at Bright MLS.
“It’s not just about rates for homebuyers, but rather the full financial picture of buying,” she said. “Home prices hit record highs this summer in many markets across the U.S. while higher gas prices and concerns about overall inflation rising have created more financial strain for would-be buyers.”
FILE - A sign is posted for a new home for sale in Ambler, Pa., Oct. 16, 2025. (AP Photo/Matt Rourke, File)
MINNEAPOLIS (AP) — Friends and family of Minnesota Democratic lawmaker Melissa Hortman said the man sentenced Thursday to two life terms plus 40 years after pleading guilty to her murder failed to eliminate her spirit and her legacy, but caused enduring fear and fury as he changed their lives forever.
Fellow lawmakers and survivors of the shooting spoke Thursday at the sentencing hearing for Vance Boelter, the man who pleaded guilty last month to federal charges related to the killing of former House Speaker Hortman and her husband Mark, as well as critically wounding state Sen. John Hoffman and his wife Yvette.
Boelter, 59, agreed to plead guilty in June, almost a year after the Minneapolis-area attacks, so federal prosecutors would not seek the death penalty. Mark Hortman's father and siblings voiced anger that he could not be sentenced to death.
U.S. District Court Judge John R. Tunheim said it was “the longest sentence I have imposed after hearing thousands of cases over the years, but I do believe it is deserved.”
In court Thursday, Sen. Hoffman said he and his family are constantly reminded of the extraordinary violence of that night, even in the mundane details of day-to-day life. He said they don't receive mail at home anymore, they have installed solid steel doors for protection, and they have changed how they do everyday tasks because of their injuries.
“The defendant looked me in the eyes and pulled the trigger. The defendant looked at my wife and chose to do the same,” Hoffman said. “My wife and I now live with injuries. We live with our bodies remembering the gunfire.”
Yvette Hoffman said she has been too traumatized to work since the attack in their home, and that she sees a therapist weekly.
“I will never forget looking down and watching my blood slowly stream down that white washing machine as I felt myself sinking to the floor,” she said, barely holding back tears. “We always have an escape plan now. This isn’t how people should live.”
Boelter admitted he spent months identifying and stalking his targets, before driving to their homes disguised as a police officer with the intention of killing them. The killings sparked the largest police search in state history.
Democratic State Rep. Kristin Bahner was one of two other legislators whose homes Boelter visited that night, but she and her family were on vacation. Bahner said the shootings had left her shaken.
“I could not fathom why I was spared and (Hortman) was not,” she said. “You failed because I carry her with me. In my mind and in my heart, she guides me.”
Mark Hortman's parents and siblings spoke of their anger Thursday, both at the man who killed him and of the justice system.
“It will not offer me peace of mind that he will have room and board provided for the rest of his life, paid for by my tax dollars,” said Lisa Hortman Bean, Mark's sister.
Melissa Hortman's mother and father and the Hortman's children changed the tone of the statements when they spoke Thursday, remembering them as attentive, loving parents and grandparents and people who had a positive impact on thousands of lives.
Sophie Hortman, their daughter, described in vivid detail having to say goodbye to Gilbert, the golden retriever, also shot by Boelter but who was still alive when they arrived at the veterinary hospital. She talked about the bedtime routine her mother had with Gilbert, who failed his service dog test because he was too friendly, and the care and love she gave him.
“I miss my mom. I miss my dad. I miss my best friends. And I miss believing in the goodness of humanity. I hope that one day these aches feel less sharp. And I know just like the love I feel for my parents, the pain will never go away,” she said through tears.
Colin Hortman talked about his parents not being at his recent wedding, about not dancing with his mother who he had hoped would make his wedding cake. He described the horror of the house, and the panic attacks and crying that have persisted in the year since their murders.
“My days are filled with gray, and the blood that was spilled is the last thing I see before I go to sleep and the first thing I see when I wake,” he said. “There is no sentence that weighs 15 gunshots, a murdered dog and the rest of my life.”
“It is impossible to realize the damage that has been done not only to our family, but to our society,” said Melissa's father Harold Haluptzok, who repeatedly referred to her as his “little girl.”
“I wish the perpetrator would have sat down and talked to Melissa about his political positions. ... if only he did that before he decided to kill them,” Haluptzok added.
Federal defender Manny Atwal spoke only briefly after the victim impact statements Thursday, saying Boelter showed remorse for his actions by pleading guilty and accepting the life sentences.
Boelter remained silent and sat extremely still for most of the hearing, showing little emotion or reaction to the anguish expressed by the survivors and family members.
After the sentence was read, he said only: “To every person I have caused ... emotions ... I am truly sorry.”
Boelter went to Hortman's home, wearing a tactical uniform and mask, about 3:30 a.m. on June 14, 2025. He rang the doorbell while shouting he was a police officer doing a welfare check, according to court documents.
Mark Hortman answered the door. Boelter gave him a fake name and badge number before requesting he summon Melissa Hortman to the door as well. He shot Mark Hortman multiple times before pushing into the house and shooting the lawmaker as she fled upstairs. Melissa and Mark Hortman were killed.
Boelter had already visited the Hoffmans' home that night, shooting and critically injuring the senator and his wife, according to police and court documents. Court documents said Boelter also went to two other lawmakers' houses that night. In one instance, no one answered the door, and in the other, Boelter was spooked when a police officer approached him in his car believing he was another officer.
Boelter also faces state charges, including two counts of murder, four counts of attempted murder, impersonating a police officer and animal cruelty. Hoffman and his family filed a personal injury lawsuit against Boelter in April.
Lauer reported from Philadelphia.
Colin Hortman (left), son of Mark and Melissa Hortman, walks into the lobby of the Diana E. Murphy United States Courthouse before a sentencing hearing for Vance Boelter in Minneapolis, on Thursday, July 23, 2026. (Alex Kormann/Minnesota Star Tribune via AP)
Members of the Hortman family come down the escalator into the lobby of the Diana E. Murphy United States Courthouse before a sentencing hearing for Vance Boelter in Minneapolis, on Thursday, July 23, 2026. (Alex Kormann/Minnesota Star Tribune via AP)
FILE - Members of law enforcement agencies investigate near a vehicle suspected to belong to shooting suspect, Vance Boelter, June 15, 2025, in Belle Plaine, Minn. (AP Photo/George Walker IV, File)
FILE - Bullet holes mark the front door of the house of Minnesota state Sen. John Hoffman and his wife who were shot earlier in the day on June 14, 2025, in Champlin, Minn. (AP Photo/Bruce Kluckhohn, File)
FILE - Armed FBI agents search for an active shooter, sweeping a neighborhood adjacent to the home of Minnesota DFL State Representative Melissa Hortman, in Brooklyn Park, Minn., June 14, 2025. (Alex Kormann/Star Tribune via AP, File)
FILE - Pictures of Mark and Melissa Hortman are set up inside the sanctuary at the Basilica of St. Mary's during funeral services for Mark and Melissa Hortman in Minneapolis, Saturday, June 28, 2025. (Alex Kormann/Star Tribune via AP, Pool, File)
FILE - This photo made available by the Ramsey County Sheriff's Office shows Vance Luther Boelter, the man charged with killing the top Democrat in the Minnesota House and her husband, and wounding a state senator and his wife, as he was arrested on June 15, 2025. (Ramsey County Sheriff's Office via AP, File)
