The average 30-year fixed mortgage rate held steady around 6.49%, influenced by rising inflation, which hit 4.2% in May 2026, the highest since 2023. Oil price surges and inflation pressures keep rates above their 2026 low of 6.09%. The Federal Reserve maintained its benchmark rate, but mortgage rates respond more to inflation and bond markets. Home prices reached a record median of $429,300 in May, though price growth slowed, signaling a housing market slowdown amid persistent inflation and high rates.