Mortgage rates in the U.S. continued their upward trend, hitting a fresh yearly peak just shy of 6.7%. By July 30, the average rate for a 30-year fixed mortgage was 6.66%, rising from 6.58% one week earlier, according to Freddie Mac. Meanwhile, the 15-year fixed rate edged up to 6.04% from 5.96%. These rates signal tougher conditions for prospective homebuyers who already face rising costs.
The latest figures represent weekly averages compiled from thousands of applications submitted between July 23 and 29. Rates briefly dipped below 6% earlier this year but have since been pushed higher by persistent inflation concerns and climbing long-term bond yields. The 30-year rate now stands near the highest point recorded a year ago on July 31, 2025, when it was 6.72%.
Rising Treasury Yields Push Borrowing Costs Higher
Mortgage rates typically follow the 10-year Treasury yield rather than the Federal Reserve's short-term rates. The 10-year yield rose to 4.68% on July 30 from 4.48% at the start of the month, keeping mortgage rates elevated. The Fed left its federal funds target range unchanged recently, but three members of the committee voted to raise rates by 0.25%, reflecting ongoing inflation pressures fueled by supply constraints and energy price jumps.
The increase in mortgage rates adds roughly $21 monthly to the principal and interest payment on a $400,000 loan with a 30-year term. The payment now sits around $2,571, compared to $2,549 last week, not counting taxes and insurance. This uptick is already cooling demand in the housing market as buyers tighten budgets.
material is for informational purposes and not financial advice
