The daily average 30-year fixed mortgage rate reached 7.07% on Thursday, its first move above 7% in more than a year, according to Mortgage News Daily. The rate increased 18 basis points over two days. Freddie Mac reported a lower weekly average of 6.76%, up from 6.71% and its highest level since the week ending June 26, 2025, reflecting a separate measure based on mortgage applications submitted to the government-backed enterprise. Mortgage rates generally track the 10-year Treasury yield rather than the Federal Reserve's short-term policy rate. Rising oil prices and inflation expectations linked to the conflict in Iran have pushed Treasury yields higher, while concerns over inflation and U.S. government debt have added to borrowing costs. Higher rates have coincided with weaker housing demand: existing-home sales fell in August as inventory rose, and economists said soft mortgage-purchase applications leave little prospect for a significant near-term recovery in existing-home sales.