US 30-Year Mortgage Rate Climbs to Near Year-High

US 30-Year Mortgage Rates Reach Highest Level Since August 2025

The most popular 30-year fixed-rate mortgage in the US rose to 6.69% last week, marking the highest level since August 2025, according to an announcement by the Mortgage Bankers Association (MBA) on Wednesday.

According to the organization's data, mortgage rates increased by 4 basis points during the week ending July 17. This level matches the rate recorded at the end of August 2025.

Mortgage lending costs have risen significantly in recent months. Following military operations conducted by the US and Israel against Iran in February of this year, energy prices increased, further intensifying inflationary pressures. As a result, the 30-year mortgage rate has risen by 0.60 percentage points since that period.

Despite energy prices declining temporarily in June, renewed tensions in the Middle East have driven oil prices higher again. This raises expectations that the US Federal Reserve may need to increase interest rates further to combat inflation.

According to Mike Fratantoni, chief economist at the Mortgage Bankers Association, the decline in inflation in June was a positive signal, but the renewed rise in oil prices makes it less likely that this progress will be maintained in July data.

The Federal Reserve will hold its next meeting next week. While a rate increase at this meeting is considered less likely, the futures market expects at least one 25 basis point increase by the end of the year. The Federal Reserve's current benchmark interest rate stands in the range of 3.50% to 3.75%.