US 30-Year Mortgage Rate Rises To 6.72% Amid Job Market Strength

Mortgage rates have recently experienced a slight uptick after several weeks of decline, with the average 30-year fixed mortgage rate rising to approximately 6.72% to 6.81% as of mid-July 2025, according to Freddie Mac and other sources. Despite these higher rates, mortgage applications for both home purchases and refinancing have increased significantly compared to the previous year, reflecting some responsiveness to the recent downward trajectory in rates. However, the broader housing market momentum remains fragile due to economic uncertainties such as tariff impacts, job loss concerns, and rising consumer debt, which have dampened buyer sentiment and contributed to sluggish pending sales. Affordability continues to be a major challenge, as home prices have roughly doubled over the past six years while mortgage rates remain elevated above 6%, making it difficult for many prospective buyers to enter the market without dual incomes or substantial earnings. Experts note that the current mortgage rates, while higher than the ultra-low rates seen during the global lockdown period, represent a normalization given the stronger economy and labor market, signaling that a return to historically low rates is unlikely in the near future. Overall, while some buyers are taking advantage of recent rate drops, economic headwinds and affordability constraints are expected to keep the housing market cautious through the remainder of 2025.