What is going on with interest rates

Rates Return to Mid-2025 Levels

After another failed ceasefire in the Iran war, oil prices increased, pushing bond yields and mortgage rates higher.

According to Mortgage News Daily, the average rate for a 30-year fixed-rate loan increased by 6 basis points to 6.87% on Monday, August 31st. It's the highest level since June 2025.

Earlier this year, economists were predicting that interest rates would fall. Before the conflict began in late February, the rates for 30-year, fixed-rate loans hovered as low as 5.98% according to Freddie Mac.

Here's an example of how rates are affecting home buyers. Currently, a buyer of a $450,000 home would have monthly principal and interest payments of around $2,363 if they closed on a 30-year fixed-rate mortgage with a 20% down payment. This is around $207 a month more than if the buyer had closed at the end of February.¹