Freddie Mac reports that the average 30-year fixed mortgage rate climbed to 6.55% this week, reaching its highest level in nearly a year.
The average 30-year fixed mortgage rate rose to 6.55% this week, marking the highest level since August 2025, according to Freddie Mac. This increase from last week's 6.49% reflects a steady upward trajectory in borrowing costs for prospective homeowners. Additionally, the average 15-year fixed mortgage rate rose to 5.93% from 5.82% over the same period. Market analysts attribute the rise in rates to geopolitical tensions, specifically the escalating conflict between the United States and Iran, which has pushed oil prices higher and increased the 10-year Treasury yield to 4.57%. While recent data showed headline inflation cooling to 3.5%, the jump in energy costs continues to pressure the inflation outlook. The higher rates have led to a measurable slowdown in market activity. Mortgage applications fell 2.7% last week, while pending home sales dropped 5.4% in June. Despite these challenges, Freddie Mac chief economist Sam Khater noted that housing inventory continues to rise, which may modestly improve the backdrop for buyers.