Mortgage Rates Tick Upward Amid Extended Economic Stability and Policy Developments

Josh Altman of Altman Brothers Real Estate appeared on ‘Varney & Co.’ to analyze Governor Gavin Newsom’s $11.2 billion housing initiative aimed at expanding California’s development capacity through tax-exempt bonds.

Closing mortgage rates edged upward this week according to Freddie Mac’s Primary Mortgage Market Survey, though the market has experienced minimal fluctuation over the past several weeks.

The 30-year fixed mortgage rate reached 6.49% this week up from 6.43% last week. The annual benchmark in 2025 averaged 6.72%. Freddie Mac’s Sam Khater noted that economic stability and improved housing affordability have increasingly supported buyers navigating the current market.

A 15-year fixed mortgage average rose modestly to 5.82% up from 5.79% last week though remains beneath the 5.86% annual average.

Realtor.com’s revised midyear forecast anticipates home price growth decelerating to 1.2% in 2026, falling behind inflation rates and indicating real-term price declines.

Expert Danielle Hale remarked that the housing market shows incremental progress as sellers adjust pricing expectations cool growth patterns and buyers gain leverage through enhanced inventory levels.

Persistent inflationary pressures linked to global factors such as the Iran conflict have postponed anticipated Federal Reserve rate cuts delaying potential mortgage rate reductions. Realtor.com projects continued stability through 2026’s latter half as market conditions normalize.

Would-be homebuyers have seen some improvements in affordability this year.

Mortgage rates were influenced by the Federal Reserve’s policies and geopolitical dynamics despite not being directly tied to Federal interest rate decisions. The 10-year Treasury yield remained near 4.5% as of Thursday afternoon.

“The economy has proved resilient. As a result, the first half of 2026 delivered stability more than momentum in the housing market,” Hale added.

Against a backdrop of both familiar and new challenges the economy has proved resilient. As a result the first half of 2026 delivered stability more than momentum in the housing market.

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