FX.co ★ US 30-Year Mortgage Rate Climbs to One-Year High

The average contract rate for a 30-year fixed mortgage in the US rose by 7 basis points to 6.76% in the week ending July 24, 2026, reaching its highest level since August 2025, according to the Mortgage Bankers Association. The increase followed a climb in Treasury yields, as persistent inflation concerns continued to pressure bond markets and dampen expectations for lower borrowing costs in the near term. Mortgage rates have risen by nearly 70 basis points since the US and Israel began strikes against Iran in late February, with higher oil prices intensifying inflation fears. Although energy prices eased in June, renewed hostilities have reinforced expectations that the Federal Reserve will keep interest rates elevated for longer. The rise in borrowing costs continued to weigh on housing demand: total mortgage applications fell 6.4% from the previous week, including a 3.6% decline in purchase applications and a 9.9% drop in refinancing activity.