Long-term U. S.
mortgage rates surged to their highest level in nearly 12 months on July 23, 2026.
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The spike was driven by a rise in crude oil prices that triggered renewed fears of inflation.
Benchmark 30-year fixed-rate mortgages rose to an average of 6.58%, according to Freddie Mac.
That was up from 6.55% the prior week, marking the third consecutive weekly increase.
Separate data from Mortgage News Daily placed its top-tier 30-year fixed index at 6.77%.
The Mortgage Bankers Association reported average contract rates for conforming loans at 6.69%.
The current rate environment reflects pressure from the bond market.
The 10-year Treasury yield rose to 4.7% at midday Thursday, up from 4.57% a week earlier.
Bond yields have been climbing since late February, propelled by geopolitical conflict in Iran that sent crude oil and fuel futures higher.
Borrowing costs for 15-year fixed-rate loans also increased, rising to an average of 5.96% from 5.93%.
Despite higher borrowing costs, mortgage purchase applications rose 6% for the week. Expanding housing inventory in several regional markets gave buyers more leverage to negotiate price cuts.
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Energy Prices Offset Inflation Progress
Economists note that higher fuel costs are eroding earlier gains in cooling inflation data.
"It's not just about rates for homebuyers, but rather the full financial picture of buying," said Lisa Sturtevant, chief economist at Bright MLS.
"Home prices hit record highs this summer in many markets across the U. S.
