US mortgage rates hit 2026 peak as Zillow data shows sharp weekly jump
New figures from the Zillow lender marketplace reveal the highest borrowing costs of the year, outpacing benchmarks from Freddie Mac and defying near-term forecasts from major housing economists.
US mortgage and refinance interest rates have reached their highest levels of 2026, according to data released by the Zillow lender marketplace on Saturday, 25 July 2026. The national average 30-year fixed rate rose by 24.1 basis points to 6.696%, marking a significant weekly acceleration in borrowing costs for homebuyers and refinancers alike.
The volatility extended across other loan products, with the 15-year fixed rate increasing by 9.6 basis points to 6.036%. The most dramatic movement was recorded in the 5/1 adjustable-rate mortgage (ARM), which jumped by 41.4 basis points to 6.637%. These figures represent national averages and highlight a broad-based increase in the cost of capital across the residential lending sector.
Zillow’s reported rates currently exceed those published by other industry benchmarks for the same period. Freddie Mac, which aggregates data from loan applications submitted to its underwriting system over the week, reported a lower national average 30-year fixed rate of 6.58%. Methodological differences contribute to the divergence, as Zillow compiles daily averages directly from its lender marketplace rather than weekly application data.
Despite the recent uptick, the current rate environment remains more favourable than historical comparisons. Mortgage rates are lower than those recorded during the same period last year and remain below the peak levels observed during the height of the COVID-19 pandemic. Additionally, home prices have not spiked with the same intensity seen in previous years, offering some relief to prospective buyers navigating the market.
Looking ahead, industry forecasts suggest a potential stabilisation of borrowing costs. The Mortgage Bankers Association (MBA) and Fannie Mae both project that 30-year rates will settle between 6.4% and 6.5% for the remainder of 2026. This outlook contrasts with the current Zillow data, which indicates that short-term market pressures may be driving rates higher than long-term economic models anticipate.
