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U.S. 30-Year Mortgage Rates Rise to Mid-6% Range as Buyers Pull Back

Renewed Iran-related strikes have pushed oil prices and long-term Treasury yields higher, keeping mortgage costs elevated and limiting near-term relief.

There are signs that elevated mortgage rates are holding back buyers. Pending home sales in June fell by 5.4% month over month and by 0.3% since last year, according to a report from the National Association of Realtors released on Thursday.
For those remortgaging or looking to buy in the coming weeks, experts advise that it is best to secure a rate sooner rather than later (Photo: Linda Steward/Getty)
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Overview

  • This week the benchmark 30-year fixed mortgage rate climbed into the mid‑6% range, about 6.55%–6.65% on major trackers, the highest level in nearly a year.
  • Mortgage application volume fell, with the Mortgage Bankers Association reporting total applications down about 2.7% and purchase applications down about 7% for the latest week.
  • Refinance activity increased even as rates rose, raising the refinance share to roughly 43.2% and driven in part by FHA and VA refinances and cash‑out transactions.
  • Markets cite renewed strikes involving Iran that pushed oil above $80 a barrel and lifted the 10‑year Treasury yield, while a cooler June CPI provided only limited or delayed relief for long‑term rates.
  • Forecasters now expect only modest easing later in 2026 if inflation stays cooler, and higher borrowing costs are worsening affordability for first‑time buyers and keeping many owners 'rate‑locked' in low pandemic-era loans, which reduces listings and tightens supply.