US 30-year mortgage rate hits highest since August 2025

The average interest rate on a 30-year fixed mortgage in the US rose to 6.76% last week, reaching its highest level since August 2025, according to data released Wednesday.

Mortgage applications fell 6.4% in the week ending July 24 from the previous week, the Mortgage Bankers Association said in its Weekly Mortgage Applications Survey.

The seasonally adjusted index measuring applications for home purchases declined 4%, while refinancing applications dropped 10%.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances increased to 6.76% from 6.69% a week earlier.

The average rate for 15-year fixed-rate mortgages also rose to 6.15% from 6.04%.

Joel Kan, the MBA's vice president and deputy chief economist, said mortgage rates moved higher following the previous week's spike in oil prices, pushing the 30-year rate to its highest level since August 2025.

Kan said the renewed increase in borrowing costs continued to weigh heavily on refinancing activity.

He added that although housing inventory has increased in some markets, elevated mortgage rates are worsening affordability challenges for many prospective buyers, contributing to the decline in purchase applications.