Overview
- The average 30-year fixed mortgage rate rose to 6.66% for the week ending July 30, Freddie Mac reported, marking the highest reading since late July 2025.
- Markets and analysts say the rise reflects higher 10-year Treasury yields caused by stronger inflation expectations and geopolitical tensions tied to Iran.
- The Fed left its policy rate unchanged at its July meeting while three FOMC members voted for a hike, and markets are pricing in at least one more tightening later this year.
- Higher rates have cut buyers’ purchasing power and helped push purchase applications down, with Mortgage Bankers Association data showing roughly a 7% decline in applications.
- At the same time buyers are finding more negotiating leverage than during the pandemic era, with more days on market, seller concessions, and options such as seller-funded rate buydowns or price reductions.