US Mortgage Rates Hit 2025 High as Energy Funding Increases

The United States economy experienced divergent trends this week, marked by rising borrowing costs and strategic infrastructure investment. Freddie Mac reported that the average long-term mortgage rate rose to 7.03%, the highest level since January 2025. This trend coincided with bond yields reaching their highest levels in roughly two decades, increasing costs for businesses and households while benefiting savers.

To address the energy demands of artificial intelligence and prevent potential blackouts, the U.S. Department of Energy announced nearly $2 billion in funding for 31 projects across 26 states. These initiatives aim to increase electricity capacity by more than 23 gigawatts.

Labor market data showed resilience, with the Department of Labor reporting that weekly unemployment claims dropped to 197,000, the lowest figure since mid-July. Financial markets responded with mixed results; the Dow Jones Industrial Average rose and the Nasdaq composite fell, while the S&P 500 remained virtually unchanged.