Mortgage Rates Jump to 6.66% as Fed Eyes Fall Rate Hikes

Mortgage rates have surged to their highest level in a year, after a divided Federal Reserve opted to hold its key interest rate steady while signaling potential future hikes as the conflict in Iran continues to fuel inflation. The average rate on 30-year fixed home loans hit 6.66% for the week ending July 30, up 8 basis points from 6.58% the previous week and the highest in one year, according to Freddie Mac. For perspective, rates averaged 6.72% during the same period in 2025."The 30-year fixed-rate mortgage averaged 6.66% this week," says Sam Khater, Freddie Mac's chief economist. "The housing market continues to benefit from more available inventory, providing prospective homebuyers with additional options and helping support buyer activity as mortgage rates fluctuate."The upswing in mortgage rates follows Wednesday’s 9-3 vote by members of the Federal Open Market Committee (FOMC) to keep the federal funds rate unchanged in a range of 3.5% to 3.75%, where it has stood since December. However, three FOMC policymakers dissented in favor of a 0.25 percentage-point hike, signaling that the 12-member panel is no longer in lockstep on inflation, and that a rate hike could be coming a...