US 30-Year Mortgage Rates Hold at Three-Year High

The average 30-year fixed-rate mortgage in the United States remained steady at 7.40% this week, maintaining its highest level in nearly three years. This plateau follows a seven-week increase driven by bond market volatility, inflation, and rising oil prices associated with the start of a war between the U.S. and Iran in late February.

While 30-year rates held firm, 15-year fixed-rate mortgages saw a slight decrease to 6.71%. High borrowing costs have significantly impacted the housing market, resulting in a 2.7% drop in mortgage applications last week. There is a growing shift toward adjustable-rate mortgages, which now represent 10.5% of all applications.

Jiayi Xu, a senior economist at Realtor.com, noted that bringing inflation under control is necessary to pave the way for lower rates and improved affordability. Market analysts suggest that if inflation worsens, the Federal Reserve System may increase key interest rates in December. Looking ahead, Fannie Mae projects the 30-year mortgage rate will average 7.4% in the final quarter of 2026 and rise to 7.5% in 2027.