Mortgage Interest Rates Today: Mortgage Rates Climb Again After Inflation Uptick

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Mortgage rates increased on Thursday for the second week in a row, on the heels of June inflation data that showed consumer prices surging to a four-month high.

The average rate on 30-year fixed home loans increased to 6.75% for the week ending July 17, up from 6.72% last week, according to Freddie Mac. Rates averaged 6.77% during the same period in 2024.

“The 30-year fixed-rate mortgage inched up this week and continues to stay within a narrow range under 7%,” says Sam Khater, Freddie Mac’s chief economist. “While overall affordability headwinds persist, rate stability coupled with moderately rising inventory may sway prospective buyers to act.”

The latest release from the Bureau of Labor Statistics on Tuesday revealed that the Consumer Price Index (CPI) rose by 2.7% on an annual basis, reversing several months of cooling trends and further reducing the likelihood of a Federal Reserve interest rate cut this month.

Notably, the impact of President Donald Trump‘s tariffs on foreign imports could be seen affecting several CPI categories, including furniture, toys, and large appliances.

While still modest, the tariffs’ impact appears significant enough to bolster the market’s view that the Fed will cleave to its “wait and see” stance for longer, despite Trump’s continued threats to fire Chair Jerome Powell over his refusal to slash rates immediately.

During a meeting with a foreign dignitary on Wednesday, the president denied reports that he was planning to replace Powell.

“No, we’re not planning on doing it. I don’t rule out anything, but I think it’s highly unlikely, unless he has to leave for fraud,” he said told reporters at the White House.

He added, however, that “a change” was coming in the next eight months and reiterated his oft-stated opinion that the Fed chair was doing “a terrible job” and “cost us a lot of money.”

The interest rates currently stand at a range of 4.25% to 4.5%, and following the latest inflation figures, they are likely to remain elevated for the remainder of the summer, spelling bad news for would-be homebuyers already facing severe affordability challenges, according to Realtor.com® economist Jiayi Xu.

“Persistently high mortgage rates and elevated home prices mean that purchasing a home requires significantly more income than in the past,” adds Xu.

Would-be homebuyers took notice, with mortgage applications plunging 10% for the week ending on July 11 after three straight weeks of increases, according Mortgage Bankers Association (MBA).

Last month, a household needed an annual income of $92,160 to afford a typical home with a 20% down payment—$44,440 more than six years ago, marking a 93.1% jump.

This dramatic increase reflects both a surge in mortgage rates—from 3.8% in June 2019 to 6.82% in June 2025—and a 37.8% increase in median listing prices during the same period.

As a result, high borrowing costs and home prices continue to pose major hurdles to homeownership, especially for residents in some of the nation’s most expensive markets, such as San Jose, CA, and Washington, D.C.

On the supply side, the pace of the housing market has continued to slow down, with homes staying on the market longer and the median listing price ticking up by just 0.2% for the third consecutive week, according to the Realtor.com Weekly Housing Trends Report released Thursday.

New listings—the measure of homeowners putting properties up for sale—rose last week by a mere 1.3% compared to a year ago, while the overall inventory increased by 25.1% annually, slowing from the previous week.

How mortgage rates are calculated

Mortgage rates are determined by a delicate calculus that factors in the state of the economy and an individual’s financial health. They are most closely linked to the 10-year Treasury bond yield, which reflects broader market trends, like economic growth and inflation expectations. Lenders reference this benchmark before adding their own margin to cover operational costs, risks, and profit.

When the economy flashes warning signs of rising inflation, Treasury yields typically increase, prompting mortgage rates to go up. Conversely, signs of falling inflation or weakness in the labor market usually send Treasury yields lower, causing mortgage rates fall.

The mortgage rates you’re offered by a lender, however, go beyond these benchmarks and take some of your personal factors into account.

Your lender will closely scrutinize your financial health—including your credit score, loan amount, property type, size of down payment, and loan term—to determine your risk. Those with stronger financial profiles are deemed as lower risk and typically receive lower rates, while borrowers perceived as higher risk get higher rates.

How your credit score affects your mortgage

Your credit score plays a role when you apply for a mortgage. A credit score will determine whether you qualify for a mortgage and the interest rate you’ll receive. The higher the credit score, the lower the interest rate you’ll qualify for.

The credit score you need will vary depending on the type of loan. A score of 620 is a “fair” rating. However, people applying for a Federal Housing Administration loan might be able to get approved with a credit score of 500, which is considered a low score.

Homebuyers with credit scores of 740 or higher are typically considered to be in very good standing and can usually qualify for better rates.

Different types of mortgage loan programs have their own minimum credit score requirements. Some lenders have stricter criteria when evaluating whether to approve a loan. They want to make sure you’re able to pay back the loan.

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