Average 30-Year US Mortgage Rate Hits Highest Level in a Year
The average U.S. 30-year fixed-rate mortgage rose to 6.66% as of July 29, 2026, marking the highest level since late 2025 and continuing its fourth consecutive week of increases. The rise is attributed in part to higher oil prices due to the Iran war, which has fueled inflation expectations and pushed up bond yields. This increase adds financial pressure on homebuyers, limiting their purchasing power and contributing to sluggish housing sales this year. The 15-year fixed-rate mortgage also climbed to 6.04%, with similar factors influencing its trajectory. The Federal Reserve recently held interest rates steady but showed signs of potential future hikes as inflation remains above target for over five years. Economists suggest that a de-escalation in the Iran conflict and reopening of oil routes could help bring down borrowing costs. Despite mortgage rates being lower than they were at this time last year, their upward trend has continued to weigh on home sales, which remain below historical averages.
Topics: Federal Reserve housing market inflation mortgage rates