Average 30-year US mortgage rate rises to highest level in a year at 6.66%
Summary
The average 30-year fixed mortgage rate in the U.S. rose to 6.66%, the highest in a year, making home loans more expensive for buyers. This increase in rates is linked to economic factors like inflation, oil prices, and investor expectations, and it has contributed to slow home sales in 2025.Key Facts
- The average 30-year fixed mortgage rate rose from 6.58% last week to 6.66%.
- One year ago, the average rate was slightly higher at 6.72%.
- The average 15-year fixed mortgage rate increased from 5.96% to 6.04%.
- Mortgage rates generally follow the 10-year Treasury yield, which rose from about 3.97% in February to 4.66% in June.
- Rising oil prices due to the conflict in Iran have pushed inflation expectations higher, contributing to higher mortgage rates.
- The Federal Reserve kept its short-term interest rate unchanged recently but does not directly set mortgage rates.
- Higher mortgage rates add more monthly costs for borrowers, reducing their ability to buy homes.
- U.S. home sales remain sluggish, with annual sales near 4 million, below the usual 5.2 million and a continuation of a market slump since 2022.
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