Mortgage Rates in US Rise to 6.66%, Highest Level in a Year

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessMortgage Rates in US Rise to 6.66%, Highest Level in a YearBorrowing costs increase as continued fighting in Iran fuels concern about higher inflation.Author of the article:Last updated 3 minutes ago You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — US mortgage rates rose to a 12-month high as Treasury yields climbed in recent weeks and continued fighting in Iran fueled concern about higher inflation.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe average for a 30-year, fixed loan increased to 6.66% from 6.58% a week earlier, Freddie Mac said in a statement Thursday. The rate was the highest since July 31, 2025, when it was 6.72%.The property market has been held back in recent months by elevated borrowing costs, which had fallen below 6% in late February before the Middle East conflict boosted energy prices. The war contributed to a disappointing spring sales season, and the market has continued to soften. Pending sales fell to their lowest level since early April during the four weeks ended July 26, according to data from brokerage Redfin. Peace talks to end the war in Iran had shown promise in early July and have now broken down, said Realtor.com Senior Economist Anthony Smith. “Markets are again reacting to the uncertainty, along with the inflationary pressure that comes as the conflict lifts oil prices,” he added.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againOn Wednesday, the Federal Reserve held its benchmark rate steady, while three officials voted for a hike. Pressure is building on Chairman Kevin Warsh to take steps to tame inflation, with the yield on the 30-year Treasury bond reaching a 19-year high after the decision. The yield on the 10-year Treasury is hovering around its highest level in a year.With the Fed signaling that its next move is more likely an increase than a cut, near-term rate relief looks unlikely for the mortgage market, Smith said.“Homebuyers are watching this all play out as the housing market slows seasonally,” Bright MLS Chief Economist Lisa Sturtevant said after the Fed meeting.While most indicators suggest a subdued level of transactions, purchases may get an unexpected lift toward the end of summer if buyers decide to start locking in deals fearing even higher mortgage rates, she said.America’s economic divide is increasingly evident in the housing market, according to a report from Zillow. Sales of luxury homes, less sensitive to rates because many buyers pay cash, jumped 6.2% in May from a year earlier while they dropped 5.4% for starter homes.The divergence was sharpest in San Francisco, where stock windfalls from artificial intelligence companies are driving demand. Sales of high-end homes surged 21.6%, while starter-home transactions slipped 1.2% as more sellers cut prices.“Starter home buyers today have more options, more negotiating power, and sellers who are more willing to deal,” said Kara Ng, senior economist at Zillow. “The challenge is that the same financial pressures making it harder to save for a down payment are also making it harder to take advantage of that opportunity.”(Adds information from Zillow report in final three paragraphs.)This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.