Mortgage News Daily reported that on Monday the 30-year fixed mortgage rate climbed by 6 basis points to 6.87%, reaching its highest point since June 2025. The rate has climbed 12 basis points since Thursday and more than 30 basis points over the past two months. "While rates are technically at their highest level in more than a year, they haven't exactly exploded with surprising, new momentum," Matthew Graham, Mortgage News Daily's chief operating officer, said. "Instead, it's been more of a slow grind fueled by the usual suspects: inflation expectations, elevated bond issuance, and economic resilience. All three of those factors are subject to at least some variability in the future."
Expectations earlier this year pointed to lower borrowing costs, but the conflict with Iran - and the associated rise in oil prices - derailed that path. The day before the war began, at the end of February, the 30-year fixed rate stood at 5.99%.
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Compared with late February, the cost of financing has jumped. On a $450,000 home with 20% down and a 30-year fixed loan, today's monthly principal-and-interest outlay comes to $2,363, which is $207 more than it would have been at the end of February. Higher rates also squeeze borrower qualifications by worsening debt-to-income ratios, reducing how many households can clear lenders' underwriting thresholds.
The rate surge is compounding pressure from home values that are firming again in parts of the country, reflecting scarce listings. Across the nation, June prices rose 1.5% from a year earlier - quickening from May's 1.2% - per the most recent reading of the S&P Cotality Case-Shiller home price index. "As financing costs are kept high for prospective buyers, current homeowners remain reluctant to give up the low mortgage rates secured in prior years," said Rebecca Kaufman, an S&P Dow Jones Indices associate director focused on commodities.
