An article summarized by Realtor.com:
Mortgage rates jumped to their highest level in more than a year, with the average 30-year fixed mortgage reaching 6.71% for the week ending September 3rd. That’s up from 6.66% the previous week and reaching its highest level since July 2025. The increase came after a global bond sell-off fueled by renewed inflation concerns tied to escalating conflict in the Middle East, pushing the 10-year Treasury yield higher and driving up borrowing costs for homebuyers.
The conflict has put additional pressure on oil prices, which are approaching $100 per barrel and raising fears that inflation could remain elevated. That could force the Federal Reserve to keep interest rates higher for longer, and traders currently see roughly even odds of a rate hike at the Fed's September meeting. Economists warn that significant mortgage-rate relief may not arrive this fall unless inflation begins to cool.
There is still some positive news for potential homebuyers, however. Home prices have continued to decline in some areas, more listings are receiving price cuts, and inventory remains higher than it was a year ago. That means buyers may find better deals, but high mortgage rates could continue to limit how much they can afford and keep pressure on the housing market.
