Mortgage Rates Rise to a 13-Month High
Mortgage rates in the U.S. have climbed this week, with the average rate for a 30-year fixed mortgage reaching 6.76%, up from 6.68% last week according to Bankrate's survey of major lenders. This marks a new high since July 2025 and reflects ongoing inflationary pressures driven by rising oil prices due to renewed conflict in Iran. The increase is impacting affordability, with the typical monthly mortgage payment for an average home now accounting for about 25% of median family income. Despite some signs that home price growth may be slowing in certain markets, national data shows continued appreciation, including a record July median home price of $434,100. Economists suggest the Federal Reserve could raise interest rates as early as September if inflation remains above its 2% target and geopolitical tensions persist. This outlook is likely to keep mortgage rates elevated for some time, further dampening housing market activity.
