The 30-year fixed mortgage rate reached 7.07% this week, the highest level in 16 months, as rising Treasury yields and inflation concerns push borrowing costs above the critical 7% threshold for the first time since May 2025.
The average 30-year fixed mortgage rate hit 7.07% yesterday, the highest since May 2025, driven by rising oil prices and inflation fears linked to the ongoing Iran conflict.
Core inflation came in hotter than expected ahead of next week’s Federal Reserve meeting, with shelter costs accelerating and pushing odds of a rate hike above 50%.
Federal Reserve Chairman Kevin Warsh signaled inflation remains too high in his Jackson Hole speech yesterday, sending bond markets into a tailspin and raising the odds of a September rate hike above 50%.
Borrowing costs climbed yesterday after Federal Reserve Chairman Kevin Warsh warned that inflation remains too high, signaling interest rates could stay elevated longer than markets hoped.
The average 30-year fixed mortgage rate rose slightly to 6.66% this week, according to Freddie Mac’s latest survey, as steady consumer spending and rising incomes signal a resilient economy and a more balanced housing market.
The 30-year fixed mortgage rate dipped to 6.67% last week and continues trending lower today, offering the first sustained decline in weeks after rates climbed through July and early August.
Mortgage rates fell noticeably on Thursday as cooler-than-expected wholesale inflation and declining oil prices pushed borrowing costs to their best level since mid-July.
The 30-year fixed mortgage rate fell to 6.67% in the week ending August 13, down from 6.69% last week, offering borrowers modest relief after rates climbed to near one-year highs in late July.
The 30-year fixed mortgage rate climbed to 6.69% this week, the highest since July 2025, as bond yields rise on inflation concerns driven by the Iran conflict and Federal Reserve policy uncertainty.