10-year Treasury yields near 12-month highs drive mortgage rates to 6.75%, offsetting unchanged Fed policy since February.
Mortgage rates surged to 6.75% on August 13, 2026, up from 5.98% in late February, despite the Federal Reserve holding its federal funds rate at 3.75% for 231 consecutive days. The increase reflects rising 10-year Treasury yields, which hit 4.72%, near the 98.8th percentile of the past year, rather than Fed policy shifts.
The 30-year fixed mortgage rate, tied to the 10-year Treasury plus a mortgage-backed security spread, reached 6.67% in Freddie Mac’s latest survey. Meanwhile, the 2-year Treasury yield, aligned with Fed policy, remained at 4.19%. Mortgage lenders like loanDepot saw shares collapse 59% year-to-date as origination volumes dried up.
D.R. Horton reported a 20% cancellation rate due to qualification failures, while Annaly Capital rose 12% on wider net interest spreads. PNC’s portfolio repositioning to a 4.4% yield drove a 25% gain.