US Mortgage Rates Hit 14-Month High Amid Inflation Fears

The average 30-year fixed-rate mortgage in the United States rose to 6.71% this week, marking the highest level since July 31, 2025. According to Freddie Mac, the 15-year fixed-rate mortgage also increased to 6.04%. These rising costs have limited homebuyer purchasing power and contributed to a slump in U.S. home sales.

The rate hike is driven by rising 10-year Treasury yields, fueled by concerns over U.S. government debt and inflation expectations. Ongoing war between the United States and Iran has increased crude oil prices, further pressuring inflation, which remains above 3%.

In response to these economic pressures, Kevin Warsh, Chair of the Federal Reserve, indicated the central bank may have "more work to do." This signals a potential interest rate increase at the upcoming September 15-16 meeting as the Federal Reserve seeks to reach its 2% inflation target.