Mortgage rates climb to 6.55%, squeezing home buyers again
Freddie Mac says the 30-year fixed mortgage rate hit its highest level since late August 2025, while pending home sales slid in June.
By Frankie Delgado · News Reporter
2 min read
Home buyers got another affordability gut punch Thursday: the average 30-year fixed mortgage rate rose to 6.55%, according to Freddie Mac.
That is a 6-basis-point increase from the prior reading and puts the key home-loan rate at its highest point since late August 2025, Freddie Mac data showed. It is also the highest level reported so far in 2026.
The move matters because mortgage rates help determine how much house buyers can afford. MarketWatch reported that even small moves of just a few basis points can lift monthly borrowing costs by several hundred dollars for some buyers.
Rates have been pulled around by the bond market, where the 30-year mortgage rate tends to track the 10-year Treasury yield. The 10-year yield was listed at 4.588% in Thursday market data.
Bond investors have had plenty to chew on over the past week, including political developments tied to tensions with Iran, new inflation numbers and rising oil prices, according to MarketWatch.
Experts quoted in the report did not expect a quick break for buyers. Hannah Jones, a senior economist at Realtor.com, said the firm still expects mortgage rates to cool somewhat later this year, but warned that the short-term outlook depends on geopolitical developments.
“Our midyear forecast still calls for mortgage rates to ease modestly over the second half of the year, and this week’s inflation data supports that view over the long run, but the near-term path remains hostage to how the Iran situation develops,” Jones said in a statement.
The higher-rate squeeze is already showing up in the housing market. The National Association of Realtors said Thursday that pending home sales dropped 5.4% in June from May.
Pending sales measure homes that are under contract, making them a forward-looking gauge for completed home sales. A decline suggests fewer closings may be coming down the line.
Lawrence Yun, the NAR’s chief economist, said buyers are being hit from both sides: borrowing costs near a one-year high and home prices at record levels nationally.
“The highest mortgage rates in nearly a year and the record-high national median home price together are contributing to a tepid housing market that is especially difficult for first-time homebuyers,” Yun said in a statement.
The latest rate jump lands in a market that was already strained by affordability problems. With mortgage rates up and prices elevated, buyers trying to get into a home face a tougher monthly-payment calculation than they did earlier in the year.
This story draws on original reporting from MarketWatch.