Weekly Mortgage Rates Edge Higher, Inflation Remains Hot

Mortgage rates barely nudged upward this week, but today’s inflation report suggests borrowers shouldn’t expect rates to fall much anytime soon. With inflation accelerating at its highest level since April 2023, this data reinforces expectations that borrowing costs will remain elevated.

The average rate on a 30-year fixed-rate mortgage rose two basis points to 6.33% APR in the week ending June 25, according to rates provided to NerdWallet by Zillow. (A basis point is one one-hundredth of a percentage point.) We calculate our weekly average using daily APRs recorded over the past five business days.

Inflation was already slightly elevated before the war started, and its effects could linger even if an official peace agreement is reached in Iran. Last week, the Federal Reserve signaled it is unlikely to lower the federal funds rate this year — and might even raise it — in an effort to keep inflation under control.

🤓 Kate on Rates: June 25, 2026

“Inflationary pressures are bound to hit lower income households first, ultimately spreading to middle income consumers and so on,” says Elizabeth Renter, NerdWallet senior economist. “The squeeze can be particularly pronounced when incomes aren’t keeping up with the higher and higher prices, and rarely do employers adjust worker pay in tandem with inflation.”

For aspiring homeowners, that squeeze can mean postponing a purchase or settling for a smaller home than planned.

An optimistic take: With oil prices retreating as the Iran conflict approaches resolution, some forecasters think May levels are the highest that inflation will get this year. If they’re right, mortgage rates could gradually ease in the months ahead — but any relief is likely to be slow.

Everything is relative when you’re mortgage shopping. Compared to this time last year, today’s mortgage rates actually aren’t too bad. In June 2025, average rates were around 50 basis points higher than this week’s levels.

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About the author

Abby Badach Doyle has been writing about homeownership and mortgages for NerdWallet since 2022. Her work has been featured in outlets including The Associated Press, The Washington Post and The Seattle Times. From interactive tools to practical advice, Abby is passionate about making the homebuying journey less stressful — especially for first-time buyers.

As a reporter, she is interested in writing about innovative housing solutions (like co-living) and personal stories about how homeownership builds community and a sense of belonging.

Abby is also a musician, songwriter and producer who knows the challenge of balancing creative fulfillment with financial stability. In 2024, she produced a special episode of NerdWallet’s “Smart Money” podcast on how to navigate income swings in a creative career.

Abby is based in Pittsburgh, a city defined by working-class grit and neighborly spirit. When she’s not writing about personal finance, she’s at her urban homestead: playing fiddle, raising chickens and preserving the bounty from her garden.