A buyer financing a median-priced Lehigh Valley home would pay about $159 more a month in principal and interest than in late February. Freddie Mac said Thursday the average 30-year mortgage rate rose to 6.76 percent.
Borrowing costs are rising while local home prices set records. The median sales price in Lehigh and Northampton counties tied a record in May and set new ones in June and July, and fewer homes were for sale than a year earlier.
Freddie Mac’s weekly survey put the 30-year average at 6.76 percent, up from 6.71 percent a week earlier and 6.35 percent a year ago. The 15-year average rose to 6.09 percent from 6.04 percent; it was 5.50 percent a year ago.
Freddie Mac’s weekly history shows the rate is the highest since June 26, 2025, when it stood at 6.77 percent. It was the third straight weekly increase.
The rate has climbed 0.78 points since Feb. 26, when it hit 5.98 percent, its lowest this year.
The Mortgage Bankers Association’s survey put the 30-year fixed rate at 6.85 percent last week, the highest since June 2025.
The Greater Lehigh Valley Realtors’ July market report put the median sales price at a record $389,500. That was up from June’s record of $385,000 and up 3.9 percent from $375,000 in July 2025.
At that price with 20 percent down, a 30-year loan of $311,600 costs about $2,023 a month in principal and interest at 6.76 percent. At 5.98 percent, it costs about $1,864. Over the life of the loan, the difference tops $57,000. The figures are the Lehigh Daily’s calculation and exclude taxes and insurance.
A year ago, a buyer at July 2025’s median price paid about $1,867 a month on a $300,000 loan at 6.35 percent, roughly $156 less than today for a house that cost $14,500 less.
Local sales have held roughly steady. Closed sales in July slipped 0.8 percent to 693, while pending sales rose 8.1 percent to 642, according to the report.
Homes for sale fell 4.8 percent to 870, a 1.6-month supply. Homes sold in an average of 17 days, the same as a year earlier, and sellers got 101.4 percent of list price.
“Buyers are still active, but the number of homes available continues to be a major factor in affordability,” GLVR CEO Justin Porembo said in the release.
The AP tied the climb to the war with Iran, which it said pushed oil prices higher and raised inflation fears, sending bond yields up. It reported the 10-year Treasury yield at 4.92 percent at midday Thursday, up from 3.97 percent in late February.
At Jackson Hole on Aug. 28, Fed Chair Kevin Warsh said the central bank must be confident underlying inflation is moving to its objective. “Otherwise, we have work to do,” he said. He also said housing is “showing strains.” The Fed’s policy committee meets Sept. 15-16.
The Mortgage Bankers Association reported Wednesday that mortgage applications fell 2.7 percent nationally in the week ending Sept. 4. Refinancing dropped 6 percent, while purchase applications slipped 0.2 percent.
“Higher mortgage rates continue to weigh on prospective homebuyers looking to act, even as housing inventory has increased in many markets,” MBA Deputy Chief Economist Joel Kan said. The Lehigh Valley is not one of them: its July inventory was below a year earlier.