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Mortgage Rates Hit Nearly 1-Year High
18 Jul
Summary
- Thirty-year fixed mortgage rates reached 6.55%, the highest since August 2025.
- Housing affordability has improved slightly despite rising rates.
- Inflation cooled in June, but Middle East conflict pushes yields higher.
Mortgage rates have surged to their highest level in almost a year, with the benchmark 30-year fixed mortgage rate reaching 6.55% as of Thursday. This marks a significant increase from the previous week's 6.49% and is the highest rate observed since August 2025. The 15-year fixed mortgage rate also saw a rise, now at 5.93%.
These fluctuations are closely linked to the 10-year Treasury yield, which has been affected by global events. While June's Consumer Price Index data showed a welcome cooling in inflation to 3.5%, escalating geopolitical tensions in the Middle East have driven up oil prices and Treasury yields. Consequently, mortgage rates are expected to remain sensitive to market volatility.
Despite the climb in mortgage rates, housing market conditions have shown slight improvements for buyers. Home affordability is marginally better, and housing inventory is increasing. Realtor.com projects home price growth to slow to 1.2% this year, effectively meaning prices are declining in real, inflation-adjusted terms.
