Current July Mortgage Rates and Market Trends

As of July, mortgage rates have been steadily rising, with the average 30-year fixed mortgage rate reaching 5.55%. This is a significant increase from last year's rates.

For borrowers, this means higher monthly payments and a greater financial burden. The 30-year fixed mortgage rate is now at its highest point in over a decade.

The Federal Reserve's decision to raise interest rates has contributed to the increase in mortgage rates, making it more expensive for people to buy or refinance a home.

For more insights, see: Current Mortgage Rates for 800 Credit Score

Mortgage rates have been making headlines lately, and for good reason. The average rate on a 30-year mortgage in the US rose to 6.85% in the second week in a row, its highest level since mid-July.

This recent jump in rates has been influenced by a rise in bond yields, which lenders use as a guide to price home loans. The yield on the 10-year Treasury bond has climbed to 4.61%, up from below 3.7% in September.

Explore further: Canadian Bond Yields Impact Mortgage Rates

Despite the financial pressures, some homebuyers are forging ahead. Contracts to buy homes were up 4.1% from a year earlier, according to Redfin data for the four weeks to Dec 15.

Here are the current mortgage rates, as of the latest data:

The Federal Reserve's recent decision to lower its benchmark interest rate for a third time may also contribute to lower mortgage rates in the future, especially if inflation continues to ease.

Intriguing read: Lower Mortgage Interest Rates

Mortgage rates can be unpredictable, but there are some key factors that influence their changes. Mortgage rates are determined by a complex interaction of macroeconomic and industry factors.

The bond market, especially 10-year Treasury yields, plays a significant role in determining mortgage rates. The level and direction of the bond market can cause mortgage rates to rise or fall.

The Federal Reserve's current monetary policy also affects mortgage rates. The Fed's bond-buying policy is a major influencer of mortgage rates. In fact, the Fed's bond-buying policy kept the mortgage market relatively low for much of 2021.

Here's an interesting read: Mortgage Bond Rates Today

The Fed's decision to taper its bond purchases downward in November 2021 led to an increase in mortgage rates. The Fed aggressively raised the federal funds rate to fight decades-high inflation, which had a dramatic upward impact on mortgage rates over the last two years.

The Fed maintained the federal funds rate at its peak level for almost 14 months, but then announced a first rate cut of 0.50 percentage points in September. This rate cut, however, was scaled back due to stubborn inflation, which pushed 10-year Treasury yields higher and triggered a mortgage rate rise.

Here's a breakdown of the current mortgage rates:

This table shows the current mortgage rates for different loan types. The rates are subject to change daily, so it's essential to check the current rates before making a decision.

Mortgage rates can be a complex and ever-changing aspect of homebuying. In recent weeks, rates have been hovering near 7% in the US.

The average for a 30-year fixed loan was 6.85% as of the latest update, up from 6.72% the previous week. This marks the highest level since early July.

To understand how mortgage rates are tracked, it's essential to know that the national and state averages are provided by the Zillow Mortgage API. This assumes a loan-to-value ratio of 80% and an applicant credit score in the 680–739 range.

The resulting rates represent what borrowers should expect when receiving quotes from lenders based on their qualifications. These rates may vary from advertised teaser rates.

Here are some key sources used to track mortgage rates:

These sources provide valuable insights into the factors influencing mortgage rates, such as the bond market and the Federal Reserve's monetary policy.

Mortgage rates have been on a wild ride lately, with the average rate on a 30-year mortgage climbing to 7.02% as of Thursday.

This is the highest rate we've seen since the Federal Reserve's forecast of scaled-back interest rate cuts in 2025, which triggered a surge in mortgage rates.

In fact, rates have soared by more than a percentage point over the past three months, reaching a two-year high.

Despite this, rates remain well below their historic peak of 8.01% reached in October 2023.

Here's a breakdown of the current rates:

As you can see, rates have been fluctuating, but overall, they remain elevated.

Freddie Mac, a government-sponsored buyer of mortgage loans, publishes a weekly average of 30-year mortgage rates every Thursday.

The weekly average this week shot up another 10 basis points, to 6.54%, with the reading of 6.08% four weeks ago being the lowest average since September 2022.

The current rate is significantly higher than the historic 23-year peak of 7.79% reached last October.

The weekly average is calculated by blending five previous days of rates, which differs from the daily readings used by Investopedia.

Here's a comparison of the current Freddie Mac rate with the daily reading used by Investopedia:

July mortgage rates have been a topic of interest for many homebuyers. Mortgage rates on 30-year fixed loans have been hovering near 7% in recent weeks.

The average rate for a 30-year fixed loan was 6.85% as of the latest data, up from 6.72% the previous week. This is the highest level since early July.

Rates on 15-year mortgages have also been on the rise, ticking up 1 basis point to a 5.92% average. This marks the highest average since July 22.

Jumbo 30-year rates have been climbing as well, adding 3 basis points to reach a 6.83% average. This is the highest level since early August.

Here's a breakdown of the national averages of lenders' best rates for new purchase mortgages:

These rates are based on data from the Zillow Mortgage API, assuming a loan-to-value ratio of 80% and an applicant credit score in the 680–739 range.