Daily mortgage rates reached another 2026 high Wednesday, with the average 30-year fixed rate rising eight basis points to 6.97% — its highest level since June 2025. The 15-year fixed rate increased five basis points to 6.54%. Weekly averages tracked by Freddie Mac are also near their highest levels of the year.
The latest increase reflects growing investor concerns about inflation and federal borrowing. Escalating conflict in Iran and attacks on oil tankers have raised fears of disruptions to global oil supplies. Because higher energy prices can increase inflation, investors are demanding greater returns on long-term bonds, which puts upward pressure on mortgage rates.
Markets are also focused on the federal government’s fiscal outlook. Investors want additional compensation for the risk of holding long-term Treasury bonds amid rising government debt and market volatility—a factor known as the “term premium.”
The Treasury Department attempted to ease some of that pressure by announcing plans to buy back older government bonds. However, investors viewed the move as too small to offset the government’s overall borrowing needs. Treasury yields continued to rise, carrying mortgage rates higher with them.
For now, geopolitical uncertainty, inflation expectations and concerns about government spending are combining to keep borrowing costs elevated and volatile.
