US 30-Year Mortgage Rates Hit One-Year High at 6.81%

Rates climbed 5 bps to 6.81%, driving purchase applications down 3.6% to a five-month low and refinance activity to mid-2025 lows amid inflation fears.

Woofun AI data shows that the average rate on a 30-year fixed mortgage increased by 5 basis points to 6.81% for the week ending July 31, marking the highest level in one year. This upward trajectory follows a dip to late-February lows, driven by energy price hikes and inflation concerns linked to the Iran conflict. Consequently, the MBA purchase index dropped 3.6% to a five-month low, while the refinance index declined 1.9% to its lowest point since mid-2025.