Key facts
- The average interest rate on 30-year fixed-rate mortgages increased to 6.69% for the week ended July 17.
- This marks the highest mortgage rate since August 2025.
- Mortgage rates have risen 0.60 percentage point since late February.
- Rising oil prices due to geopolitical tensions are contributing to inflation concerns.
- The 10-year Treasury yield, influential for mortgage rates, has increased significantly.
- The Federal Reserve is expected to hold rates steady at its upcoming meeting, but markets anticipate potential hikes later in the year.
The interest rate on 30-year fixed-rate mortgages climbed to 6.69% in the week ended July 17, the highest level since August 2025, according to the Mortgage Bankers Association. This marks an increase of 0.60 percentage point since late February, driven by renewed geopolitical tensions in the Middle East that have pushed oil prices higher and intensified inflation concerns.
MBA Chief Economist Mike Fratantoni noted that recent improvements in inflation data are unlikely to persist due to spiking oil prices, suggesting mortgage rates will remain elevated. While the Federal Reserve is widely expected to hold rates steady at its upcoming meeting, interest rate futures markets are pricing in at least one 25-basis-point rate hike by the end of the year.
More immediately impactful for homebuyers, the yield on the 10-year Treasury, a key benchmark for mortgage rates, has risen by over a quarter percentage point since late June, reaching its highest point in two months. This upward pressure on Treasury yields is occurring ahead of any potential move by the Federal Reserve.