Mortgage Rates Hit One-Year High Amid Iran Conflict and Fed Uncertainty

The average 30-year fixed-rate mortgage climbed to 6.66 %, up from 6.58 % the previous week, according to Freddie Mac data released Thursday. The 15-year fixed rate also rose, reaching 6.04 % from 5.96 %. Both rates are the highest levels recorded in the past twelve months. Higher borrowing costs are adding several hundred dollars to monthly mortgage payments, curbing purchasing power and prompting many prospective buyers to pause. Mortgage applications fell 6.4 % week-over-week, and refinance requests dropped 10 % in the same period, per the Mortgage Bankers Association (MBA).

UsNews and World Report

Seasonally adjusted sales of previously occupied homes were up 0.7 % from January to June compared with the same span last year, yet annualized sales remain near 4 million, well below the historic norm of roughly 5.2 million. Sales were essentially flat last year, lingering at a 30-year low.

Associated Press

U.S. investors have linked the recent rate surge to the war that began in February 2026 when the United States and Israel launched joint strikes against Iran. The conflict has pushed crude oil prices higher, feeding broader inflation pressures. The Personal Consumption Expenditures price index fell 0.1 % in June, briefly easing inflation to an annual 3.7 %, but it remains well above the Federal Reserve’s 2 % target.

CNN

• 30-year fixed mortgage rate: 6.66 % (up from 6.58 %).

UsNews and World Report

• 15-year fixed mortgage rate: 6.04 % (up from 5.96 %).

UsNews and World Report

• 10-year Treasury yield: 4.66 % at midday Thursday.

UsNews and World Report

• Mortgage applications: down 6.4 % week-over-week.

UsNews and World Report

• Refinance applications: down 10 % week-over-week.

UsNews and World Report

• Home-sales pace: ~4 million annualized, versus historic ~5.2 million.

Associated Press

• “With the Fed signaling that its next move is more likely a hike than a cut, near-term rate relief looks unlikely,” — Anthony Smith, senior economist at Realtor

Associated Press

• “While incoming economic data will continue to shape the outlook for interest rates, elevated borrowing costs remain a challenge this summer for many prospective homebuyers,” — MBA CEO Bob Broeksmit, said MBA CEO

Associated Press

These developments suggest that, barring a rapid de-escalation of the Iran conflict and a sustained decline in oil prices, mortgage rates are likely to stay elevated, continuing to pressure the U.S. housing market throughout the remainder of 2026.

CNN