The 30-year mortgage rate in the United States has risen to its highest level in nearly a year, putting ongoing pressure on housing demand.

U.S. mortgage rates have risen for the fifth consecutive week, reaching their highest level of the year. Amid ongoing tensions in the Middle East, the Federal Reserve's decision to maintain interest rates, and increasing market inflation concerns, U.S. long-term Treasury yields remain elevated, further pushing up mortgage financing costs and adding greater pressure to an already weak real estate market. According to data released by Freddie Mac on Thursday, as of that week, the average rate for a 30-year fixed mortgage in the U.S. climbed from 6.66% the previous week to 6.69%, marking the highest level since July 31, 2025. The continued rise in mortgage rates has led many potential homebuyers, who have been waiting due to affordability issues, to further delay their purchasing plans. Data from the Mortgage Bankers Association indicates that with rising mortgage rates, there was a decline in new mortgage applications during the last two weeks of July, showing that increasing financing costs are suppressing homebuying demand. Mortgage rates are typically closely related to the trends of the U.S. 10-year Treasury yield. Last week, Federal Reserve Chairman Waller sent mixed signals regarding future inflation control policies, pushing the 10-year Treasury yield to its highest level in over 18 months at one point. Subsequently, as the U.S., Iran, and Oman approached an agreement to reopen the Strait of Hormuz, long-term Treasury yields retreated somewhat, but overall they remain significantly higher than during most of 2025. Persistently high financing costs have also exacerbated housing affordability issues in the U.S. The latest data from real estate brokerage Redfin shows that the annual income required for an average American to purchase a typical home is nearly $110,000, still near historic highs. Although the prices for first-time homebuyer properties are relatively lower, the high costs of renovations are reducing their actual affordability. Redfin senior economist Yingqi Xu stated that first-time homebuyers are approaching their budget limits to afford monthly mortgage payments, leading to a generally cautious attitude towards homes that require significant repairs or renovations. She said, "First-time homebuyer properties often require various trade-offs, and finding suitable listings is challenging in itself. For first-time buyers with already tight budgets, they are usually reluctant to take on high renovation costs." Currently, the U.S. real estate market is showing a clear trend of divergence. Benefiting from the wealth effect of rising stock markets, the demand for home purchases among high-income groups remains relatively robust, while middle- and lower-income buyers continue to exit the market. According to a report released by Zillow in July, sales of first-time homebuyer properties in May fell 5.4% year-on-year, while luxury home sales grew by 6.2% over the same period. However, as market supply increases, buyers' bargaining power has improved compared to previous years. Redfin data indicates that the number of active listings nationally exceeds that of buyers by nearly 500,000, with about one-fifth of the homes for sale having reduced their prices, providing buyers with more room to negotiate. Lawrence Yun, chief economist for the National Association of Realtors, stated that the current pace of income growth has outstripped rising home prices, which has somewhat improved housing affordability. But he also pointed out that the biggest short-term factor affecting housing affordability remains the continuously rising mortgage rates.