Mortgage rates notched another recent high this week. It's uphill from here as Treasury yields jump.

This week, 30-year mortgage rates averaged 6.58%, the highest since the week of Aug. 21, 2025, and up slightly from 6.55% last week, according to data from Freddie Mac published Thursday. A sharp rise in the 10-year Treasury yield in the wake of the heightened U.S. war in Iran and oil prices hitting $100 a barrel is likely to send them higher.

The data collection period ends Wednesday evening. That means Thursday's jump in the 10-year Treasury yield, a barometer for mortgage rate movements, has yet to factor in. The yield hit a new 2026 intraday high of 4.710% Thursday morning, the highest since January 2025, according to Dow Jones Market Data.

Borrowing costs are rising as oil prices trigger inflation fears. And it isn't just higher home financing: credit card borrowing costs and auto loans could rise. Certificates of deposit, on the other hand, could offer higher savings rates.

Stocks of companies related to the home building industry took a hit as Treasury yields rose: The iShares U.S. Home Construction exchange-traded fund is down 1.6% on Thursday along with a lower broader market.

Keith Gumbinger, vice president of mortgage website HSH.com, told Barron's that spiked 30-year fixed-mortgage rates will likely lift monthly payments on a $350,000 mortgage by $46.23 a month.

"While that might not be a deal breaker, the rise in rates could push folks to the sidelines for a time as they hope for rates to decline again," he says.

High borrowing costs are eroding buyer confidence, making it difficult for first-time buyers to enter the market, and Thursday's market volatility stands to further keep them on the sidelines.

Mortgage rates have faced sustained upward pressure this spring, with the average 30-year hovering around 6.5% in June. July brought a modest respite, with the rate hitting a seven-week low of 6.43%.

"You just kind of wonder when Americans are going to just accept the 6 or 6.5% rates as the new reality," says Bankrate Housing Market Analyst Jeff Ostrowski. "It seems like a lot of people aren't willing to do that yet."

Write to Molly Bordoff at molly.bordoff@barrons.com and Shaina Mishkin at shaina.mishkin@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

July 23, 2026 13:05 ET (17:05 GMT)

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