Why Your Mortgage Rate Is Rising When the Fed Hasn't Moved

The Fed hasn't changed its key rate since January 2026. But 30-year mortgage rates climbed about a quarter-point to 6.76%, near a one-year high per Reuters. Why? Bond investors — not the Fed — set long-term borrowing costs, and they're demanding higher returns while betting on fewer future rate cuts. Three Fed officials dissented on July 29, deepening the uncertainty.