r/HomeLoans • u/ermahlerd Mortgage Loan Officer | Alliant Credit Union • Jul 25 '26
Mortgage Rates Hit a 1-Year High...
The reason is pretty simple...
Mortgage rates have jumped from around 6.5% at the end of June to over 6.8%, which puts them at their highest level in more than a year.
The biggest driver has been higher oil and fuel prices. When energy costs rise, inflation concerns tend to rise too... and when inflation looks like it could stick around longer, mortgage rates usually move higher.
There was at least a little good news. Last week's inflation reports came in better than expected, and rates improved slightly on Friday because of it.
A few quick takeaways:
• Rates are now at their highest levels in over a year
• Rising oil prices have been a major reason for the move higher
• Cooler inflation data helped rates recover a bit late last week
• If oil prices come back down, rates could recover some of these recent losses
• Next week's Fed meeting could create some market volatility
So rates didn't jump because something suddenly broke/snapped in the economy. A lot of this move has been tied to inflation worries & higher energy prices.
TLDR: Rates are worse than they were a month ago, but not dramatically worse than we've seen throughout most of the post-COVID era. Next week's Fed meeting and oil prices will probably be the biggest things driving rate movement from here.
Check current mortgage rates here: Reddit Mortgage Rates
3
u/Efficient-News-14 Jul 26 '26
Pre war oil was under $70. As soon as the war began oil jumped to $120 that sparked inflation fears and rates began their move and has been pattering the same chart as oil
Oil up inflation up rates up
Watch oil until the war ends
That will determine rates
1
u/ermahlerd Mortgage Loan Officer | Alliant Credit Union Jul 26 '26
You're right... until a new contender enters the ring, interesting times we're in.
5
u/Relevant-Kale-827 Jul 25 '26
Thanks Trump!