Average 30-year US mortgage rate climbs to 6.55%, highest level in
nearly a year
[July 17, 2026] By
ALEX VEIGA
The average long-term U.S. mortgage rate climbed this week to its
highest level in nearly a year, driving up borrowing costs for
prospective homebuyers.
The benchmark 30-year fixed rate mortgage rate rose to 6.55% from 6.49%
last week, mortgage buyer Freddie Mac said Thursday. One year ago, the
average rate was 6.75%.
Higher mortgage rates can add hundreds of dollars a month in costs for
borrowers, limiting homebuyers’ purchasing power at a time when
affordability challenges continue to sideline many aspiring homeowners.
Mortgage rates are influenced by several factors, from the Federal
Reserve’s interest rate policy decisions to bond market investors’
expectations for the economy and inflation. They generally follow the
trajectory of the 10-year Treasury yield, which lenders use as a guide
to pricing home loans.
Rates have been mostly rising this year as the war with Iran has driven
crude oil prices sharply higher, stoking expectations of hotter
inflation. That's pushed up long-term bond yields relative to where they
were before the conflict began in late February, causing mortgage rates
to trend higher.
The 10-year Treasury yield was 4.57% at midday Thursday on the bond
market, up from 4.54% a week ago. It was just 3.97% in late February,
before the war broke out.
The average rate on a 30-year mortgage is now the highest it's been
since Aug. 28, when it was at 6.56%. As recently as late February, the
average rate dropped slightly below 6% for the first time since late
2022.
Borrowing costs on 15-year fixed-rate mortgages, often sought by
borrowers refinancing a home loan, also rose this week. That average
rate increased to 5.93% from 5.82% last week. A year ago, it was at
5.92%, Freddie Mac said.
A report this week showing prices paid by consumers for gas, clothes and
other goods cooled last month could help take pressure off the Federal
Reserve, which is considering raising interest rates.
[to top of second column] |
 The central bank doesn’t set
mortgage rates, but its decisions to raise or lower its short-term
rate are watched closely by bond investors and can ultimately affect
the yield on 10-year Treasurys.
That cooler inflation reading “is a step in the right direction, but
until mortgage rates actually follow suit, buyers will keep feeling
the pinch of stubbornly high borrowing costs even as other
conditions improve,” said Hannah Jones, senior economist at
Realtor.com.
While average long-term mortgage rates remain lower than they were
at this time last year, their upward trajectory has weighed on home
sales this year.
And the latest monthly tally of home purchase transactions that have
yet to be finalized points to potentially more sluggish home sales
this summer.
Pending U.S. home sales fell 5.4% in June from the previous months
and were down 0.3% from June last year, the National Association of
Realtors said Thursday. There’s usually a month or two lag between a
contract signing and when the sale is finalized, which makes pending
home sales a near-term bellwether for the housing market.
Data on mortgage applications also signal that the upward trend in
mortgage rates has given some would-be homebuyers reason to pause.
Mortgage applications, which include loans to buy a home or
refinance an existing mortgage, fell 2.7% last week from the
previous week, according to the Mortgage Bankers Association. The
pullback was driven mainly by a 7% drop in applications to buy a
home.
All contents © copyright 2026 Associated Press. All rights reserved
 |
