Mortgage Rates See Modest Rise This Week Amid Economic Crosswinds (July 20, 2025)

(Prescott, AZ) - Prospective homebuyers and those considering a refinance have been met with a slight uptick in mortgage rates this week. After a period of relative stability, the needle has moved, influenced by a mix of economic indicators that continue to keep the market on its toes.

The average rate for a 30-year fixed-rate mortgage, a popular choice for homeowners, hovered around the 6.8% to 6.9% mark this week, according to major financial news outlets. This represents a modest increase from the previous week, pushing rates to a three-week high in some instances. Similarly, the 15-year fixed-rate mortgage, often favored by those looking to pay off their homes faster, also saw a slight increase, with rates settling in the 5.9% to 6.1% range.

So, what's behind this recent upward movement? The primary driver appears to be recent inflation data. Reports released this week indicated that inflation remains a persistent concern. When inflation is high, the value of the dollar decreases, and lenders typically demand higher interest rates to compensate for this.

Another key factor influencing mortgage rates is the Federal Reserve's monetary policy. While the Fed does not directly set mortgage rates, its decisions on the federal funds rate create a ripple effect throughout the economy. The market is closely watching the Fed's next move, with speculation about potential rate cuts later in the year. However, the latest inflation numbers may give the central bank reason to maintain its current stance for a while longer.

Despite the incremental increase, it's important to view this week's activity in the broader context. Mortgage rates have been fluctuating within a relatively narrow band for the past several months. For potential buyers who have been waiting on the sidelines, this slight rise may not be a significant deterrent. The housing market continues to see a steady, if not robust, level of activity, with many buyers adjusting to the current rate environment.

It is crucial for anyone considering a home purchase or refinance to understand their individual financial situation. The rates mentioned above are national averages, and the actual rate you may be offered will depend on a variety of factors, including your credit score, down payment size, and the type of loan you are seeking.

*Disclaimer: This article is for informational purposes only and does not constitute financial advice. Mortgage rates are subject to change and can vary widely. It is essential to consult with a qualified mortgage professional or financial advisor to discuss your specific circumstances and determine the best path for you.