Mortgage rates hit highest level in nearly a year; Treasure Valley sales trend upward despite higher rates

Borrowers seeking a new home loan are still facing high mortgage rates that continue to rise.

The average long-term, 30-year fixed rate mortgage hit 6.55% late last week, up from 6.49% one week prior. But the current rate is still slightly lower than rates at the same time in 2025, according to mortgage buyer Freddie Mac.

One year ago, the average rate reached 6.75%. In February of this year, average rates dipped below 6% for the first time since late 2022.

Despite another recent report indicating consumer prices for gas, clothing and other goods dipped slightly last month, home loan rates remain an issue for many potential buyers nationwide.

“That cooler inflation reading is a step in the right direction, but until mortgage rates actually follow suit, buyers will keep feeling the pinch of stubbornly high borrowing costs even as other conditions improve,” said Hannah Jones, a senior economist at Realtor.com.

National mortgage rates typically follow the trajectory of the 10-year Treasury yield, a benchmark used by lenders for pricing home loans. As of late last week, the 10-year Treasury yield stood at 4.57%, a .03% increase over the previous week.

Those increased mortgage rates haven’t stopped an upward trajectory in Idaho’s Treasure Valley, according to MLS data provided by The Agency Boise. In May, Ada County saw 1,001 sales, an increase of 166 more closings or 19.9% than May 2025. In Canyon County in May, 521 homes sold or 12.3% more than the year prior.

“Real estate is hyper local, so it’s not unusual to see multiple offers in areas with high demand and low inventory,” said Julia Shoemaker, real estate professional with The Agency Boise. “But now we’re seeing an overall increase in competition throughout the market for homes based on location, condition and strategic pricing.”

Nationally, in late February, prior to the start of the Iran war, the mortgage rate was considerably lower at 3.97%. The conflict in Iran has severely impacted crude oil prices, which in turn have stoked expectations of inflation. The uncertainty has pushed up long-term bond yields to where they were before the war, causing mortgage rates to move upward.

Additionally, several other factors are also impacting rates, including the Federal Reserve‘s interest rate policy decisions, as well as expectations of the economy and inflation by bond market investors.

Borrowers seeking 15-year fixed rate mortgages also experienced increases, with the average rate jumping to 5.93%, the same place it was one year ago, and up slightly from 5.82% last week.

Fluctuating and increasing mortgage rates are also impacting home sales, as pending sales fell 5.4% in June, down .03% from June 2025, according to the National Association of Realtors.