Mortgage rates in the US have hit their highest level in nearly a year, reaching 6.58% for the first time since August 2026. According to Freddie Mac data this week, the average 30-year fixed-rate mortgage rate rose from 6.55% a week earlier, fueled by geopolitical and inflation concerns impacting the markets. Additionally, fifteen-year mortgage rates jumped to 5.96%, from 5.93%.
The 10-year Treasury yield, which mortgage rates closely track, has risen in recent days amid rising tensions between the US and Iran. Rates have been mostly rising this year as the conflict in Iran has driven crude oil prices sharply higher, stoking expectations of hotter inflation. That’s pushed up long-term bond yields relative to where they were before the conflict began in late February, causing mortgage rates to trend higher.
Additionally, on Thursday, oil prices crossed $100 per barrel for the first time since May, sparking new concerns that inflation may soon accelerate. The inflation battle reigns on; however, it did receive a promising update just two weeks ago. The latest Consumer Price Index (CPI) report revealed that US inflation has fallen to 3.5%, lower than most expectations.
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Although mortgage rates are sitting at their highest level since last August, at least some homebuyers are moving forward. Mortgage applications for home purchases were up 6% through Friday from a week earlier, according to the Mortgage Bankers Association.