Mortgage rates continued to move higher this week

Higher rates and rising home prices have eroded home affordability

By Mark Huffman of ConsumerAffairs

July 18, 2025

• 30-year fixed mortgage averaged 6.75%, up slightly from 6.72% last week.

• 15-year fixed mortgage rose to 5.92%, up from 5.86%.

• Despite the uptick, rate stability and growing inventory could encourage hesitant homebuyers.

Freddie Mac has released its latest Primary Mortgage Market Survey, showing that average mortgage rates inched higher this week. The benchmark 30-year fixed-rate mortgage (FRM) now stands at 6.75%, marking a modest increase from 6.72% last week. Meanwhile, the 15-year FRM rose to 5.92%, up from 5.86%.

Compared to a year ago, mortgage rates have remained relatively stable. In July 2024, the 30-year FRM was at 6.77%, and the 15-year FRM at 6.05%just slightly above today’s levels. This narrow range under the 7% mark has become the norm in 2025, offering some degree of predictability for both buyers and lenders.

The 30-year fixed-rate mortgage inched up this week and continues to stay within a narrow range under 7%. While overall affordability headwinds persist, rate stability coupled with moderately rising inventory may sway prospective buyers to act, said Sam Khater, chief economist at Freddie Mac.

What it means for home affordability

Although rates remain elevated compared to pre-pandemic levels, their consistency has helped reduce uncertainty for buyers navigating todays housing market. The real constraint continues to be affordability, especially in metropolitan areas where home prices remain high and inventory hasnt yet fully rebounded.

However, some industry analysts say the recent trend of moderately increasing housing supply may gradually ease price pressure. As more listings enter the market and sellers adjust expectations, buyers, especially first-timers, may find more opportunities, even in a high-rate environment.

Buyers: act or wait?

For prospective homebuyers, this week’s report sends a mixed signal:

• Positive: Rates remain stable and predictable, allowing better financial planning.

• Negative: Affordability challenges linger, especially with ongoing inflation and tight credit conditions.

Still, if inventory continues to build through the summer, it could shift the advantage slightly back toward buyers, particularly if wages and employment stay strong.

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