U.S. 30-Year Mortgage Rate Holds Near 6.75% Ahead of Fed Meeting
Key Takeaways
- •Bankrate reported the national average 30-year fixed mortgage rate at 6.75%, up 0.12 percentage points from the prior week.
- •Freddie Mac’s weekly survey showed the 30-year fixed rate at 6.58% as of July 23, near a one-year high.
- •The 10-year Treasury yield rose to 4.69% on Friday from 4.50% on July 21, helping keep mortgage rates elevated.
- •Mortgage applications increased 1.9% in the latest MBA survey, with purchase applications up 6% and refinance demand down 2%.
- •New single-family home sales rose 1.6% in June to an annual rate of 628,000, while remaining 5.6% below the year-earlier level.
U.S. mortgage rates remained elevated Monday, keeping borrowing costs near their highest level in almost a year as rising Treasury yields and uncertainty ahead of this week’s Federal Reserve meeting continued to influence the outlook for home loans.
Bankrate placed the national average 30-year fixed mortgage rate at 6.75%, up 0.12 percentage points from the previous week. The average 15-year fixed rate was 6.10%. Among other loan categories, 30-year FHA loans averaged 6.43%, VA loans averaged 6.49%, and jumbo loans averaged 6.73%.
The figures are national averages and are not guaranteed offers from lenders. Actual mortgage quotes can differ depending on a borrower’s credit score, down payment, loan size, property type and whether discount points are paid.
At a 6.75% rate, the monthly principal-and-interest payment on a $400,000, 30-year mortgage would be about $2,594. That calculation excludes property taxes, homeowners insurance and other housing-related costs. For buyers, the rate level matters because even small changes can alter monthly payments and debt-to-income calculations used in mortgage underwriting.
Freddie Mac Data Shows Rates Near a One-Year High
Freddie Mac’s latest weekly survey showed the average 30-year fixed mortgage rate at 6.58% as of July 23, compared with 6.55% one week earlier. The average 15-year fixed rate increased to 5.96% from 5.93%.
The 30-year rate reached its highest level in nearly a year, although it remained below the 6.74% average recorded during the same week in 2025.
The gap between Freddie Mac’s 6.58% figure and Bankrate’s 6.75% average reflects differences in timing and methodology. Freddie Mac publishes a weekly survey based on mortgage applications submitted to lenders. Bankrate updates its national averages more frequently, allowing its figures to respond more quickly to changes in the bond market.
The Mortgage Bankers Association reported another widely watched measure. Its survey put the average rate for conforming 30-year fixed loans at 6.69% during the week ended July 17. Jumbo mortgages averaged 6.44%, FHA loans averaged 6.34%, 15-year fixed loans averaged 6.04%, and 5/1 adjustable-rate mortgages averaged 5.97%.
Treasury Yields Continue to Hold Mortgage Rates Higher
Mortgage rates have climbed alongside long-term Treasury yields. The 10-year Treasury yield ended Friday at 4.69%, up from 4.50% on July 21. The 30-year Treasury yield stood at 5.18%.
The bond market is important for mortgage pricing because lenders often use it as a benchmark when setting home-loan rates. Mortgages compete with Treasury securities and mortgage-backed bonds for investor demand. When Treasury yields increase, mortgage rates often move higher as well. The spread between mortgage rates and Treasury yields also reflects factors such as prepayment risk, lender margins and demand for mortgage-backed securities.
The Federal Reserve does not set mortgage rates directly, but its policy decisions can affect Treasury yields and lenders’ funding costs. The Fed currently holds its benchmark rate in a range of 3.5% to 3.75% and is scheduled to meet Tuesday and Wednesday, according to its June 17 monetary policy statement.
Mortgage Demand Improves Despite Higher Borrowing Costs
Mortgage demand improved even with rates near recent highs. Total applications rose 1.9% in the latest MBA survey. Purchase applications increased 6%, while refinance demand declined 2%.
Adjustable-rate mortgages accounted for 7.7% of total activity as some borrowers looked for lower initial payments. These loans typically start with a fixed rate for an initial period before adjusting based on market benchmarks, making them more sensitive to future rate resets than traditional fixed-rate mortgages.
New single-family home sales rose 1.6% in June to an annual rate of 628,000. Sales, however, were still 5.6% below their level a year earlier. The median price of a new home fell to $398,300, while supply stood at 9.3 months at the current sales pace.
Mortgage rates could remain volatile this week as investors respond to the Fed’s decision, inflation concerns and movements in the 10-year Treasury yield. A sustained decline in bond yields could give lenders room to reduce borrowing costs. Another increase in yields would likely keep the 30-year fixed rate close to its current range.