Mortgage rates in the US have surged back into uncomfortable territory, with benchmarks pushing toward 7% and some measures already touching the mid-to-high 6% range. After a brief reprieve earlier this year when rates dipped to 6.01% in February, the steady climb back up is squeezing affordability and grinding home sales to a crawl.
Freddie Mac reported the 30-year fixed mortgage rate at 6.49% as of July 9, up from 6.43% the prior week. Other tracking services like Bankrate and Optimal Blue have pegged rates even higher, in the 6.46% to 6.64% range. And in May, rates briefly touched 6.75%, the highest since July 2025.
The rate lock trap
Millions of homeowners locked in mortgages below 6% during the pandemic-era rate bonanza. Selling now means trading that sweetheart deal for a new loan at significantly higher rates. So they’re not selling.
This creates what economists call the “rate lock” effect. The result is a housing market running on fumes. Existing-home sales have dropped notably, with fewer properties hitting the market. But prices haven’t followed them down. In fact, home prices have pushed to record highs, defying the usual gravity that kicks in when sales volume declines.
