Mortgage Rates Hit 6.69% as Markets Await Critical Deal To Reopen Strait of Hormuz

Mortgage rates hit their highest level in over a year in a fresh blow to homebuyers, as the wait for a potential deal with Iran to reopen the strategic Strait of Hormuz continued this week. The average rate on 30-year fixed home loans climbed to 6.69% for the week ending Aug. 6, up 3 basis points from 6.66% the previous week and the highest since, according to Freddie Mac.This is the first time in 10 months that rates have been higher than their year-ago level. For perspective, rates averaged 6.63% during the same period in 2025."The 30-year fixed-rate mortgage averaged 6.69% this week," says Sam Khater, Freddie Mac's chief economist. "While mortgage rates continue to influence affordability, the housing market is showing signs of adjustment, with listing prices modestly below year-ago levels and for-sale inventory improving from the limited supply seen in recent years."The latest uptick in borrowing costs comes on the heels of a choppy week in the bond market, which saw the 10-year Treasury yield hit an 18-month high above 4.7% before pulling back several basis points on renewed hopes that the U.S. and Iran are nearing a peace deal after President Donald Trump said that negotiatio...