US Mortgage Rates Hit One-Year High as Oil Prices Climb

The average 30-year fixed-rate mortgage in the United States reached 6.66% on July 30, 2026, the highest level in one year. This marks the fourth consecutive weekly increase, while the 15-year fixed-rate mortgage also rose to 6.04%.

Freddie Mac attributed the climb to rising 10-year Treasury yields, which hit 4.66% as high crude oil prices linked to the war in Iran drove up inflation expectations. This trend follows a Federal Reserve decision to hold key interest rates steady, despite three regional presidents dissenting in favor of hikes to address stubborn inflation.

These borrowing costs have triggered a slump in the U.S. housing market. The Mortgage Bankers Association reported a 6.4% drop in mortgage applications last week, and home sales continue to remain well below historic norms.