U.S. Mortgage Rates Hit 2025 High, Affordability Tightens

Mortgage rates in the U.S. have edged higher, with the average 30-year fixed rate reaching about 6.74%, the highest level since late June 2025, breaking a five-week streak of declines. The rise follows a stronger-than-expected jobs report and ongoing concerns about inflation, particularly from potential tariff-driven pressures. The Federal Reserve has maintained steady rates in 2025 amid persistent inflation and global trade tensions, though markets anticipate possible rate cuts as early as September if warranted. Despite higher rates, both refinance and home purchase applications have increased year-over-year, with refinance volume rising 56%. Housing affordability remains strained by elevated prices and recession risks. Experts urge buyers and refinancers to monitor rates closely and act quickly if conditions improve, as the market is highly responsive to economic news.