US Mortgage Rates Climb to Near-Year High of 7.22% as Fed Holds Steady

The average rate on a 30-year fixed mortgage in the United States climbed to 7.22 percent in the week ending July 24, 2026, according to Freddie Mac’s Primary Mortgage Market Survey, reaching the highest level in nearly a year. The increase adds further pressure on homebuyers already struggling with elevated property prices and tight inventory in most major markets.

The 15-year fixed mortgage rate also rose, reaching 6.74 percent in the same week. Both figures represent a continuation of a multi-week upward trend that began in mid-June following stronger-than-expected employment data and stubborn inflation readings that have complicated the Federal Reserve’s rate-cutting plans.

The Federal Reserve held its benchmark federal funds rate steady at its July 2026 meeting, the third consecutive pause since the rate cycle began. Fed Chair Jerome Powell indicated that policymakers want to see additional evidence of inflation declining toward the 2 percent target before proceeding with further cuts.

Mortgage rates do not move in lockstep with the Fed’s overnight rate but are heavily influenced by the 10-year US Treasury yield, which has risen as investors recalibrate their expectations for the pace of future rate reductions. Higher Treasury yields push mortgage rates higher, as lenders price loans relative to government borrowing costs.

Housing affordability has deteriorated sharply compared to the period before the 2022 rate-hiking cycle. At today’s rate of 7.22 percent, the monthly principal and interest payment on a $400,000 30-year mortgage is approximately $2,720, compared to around $1,700 at the sub-3 percent rates available in 2021.

Existing home sales have remained suppressed as many current homeowners with mortgages locked in at historically low rates are reluctant to sell and take on a new loan at current levels — a phenomenon economists call the “lock-in effect.” New construction has partially offset this, but builders have faced their own cost pressures from higher financing rates.

Economists expect mortgage rates to remain above 7 percent through most of 2026, with meaningful relief unlikely until the Fed signals more clearly that it is prepared to resume rate cuts.