US Mortgage Rates Rise to 6.58% as Oil-Driven Inflation Fears Lift Yields

The average rate on a 30-year fixed US mortgage rose to 6.58% for the week ending July 23, according to Freddie Mac's Primary Mortgage Market Survey, up from 6.55% the previous week but still below the 6.74% recorded a year earlier. The 15-year fixed rate averaged 5.96%, compared with 5.93% a week earlier and 5.87% at the same point last year. It marked the second straight weekly increase and the highest reading since late May. Analysts linked the move to renewed tension in the Middle East, which has pushed oil and gasoline prices higher and revived concern about inflation in the months ahead, in turn lifting yields on the 10-year Treasury note that mortgage rates closely track. Freddie Mac's chief economist encouraged borrowers to compare offers, noting that obtaining an additional rate quote can save roughly $600 over the life of a loan and up to $1,200 with three quotes. Despite the increase, housing economists point to rising inventory and steadier home prices as modest positives for prospective buyers navigating a still-expensive market.