Mortgage Rates Fall to 6.67%, Ending Five-Week Climb

Mortgage Rates Fall for the First Time in Six Weeks as 30-Year Average Hits 6.67%

U.S. mortgage rates declined for the first time in six weeks, offering homebuyers a small measure of relief after borrowing costs climbed through most of July and early August.

The average rate on a 30-year fixed mortgage fell to 6.67% as of Aug. 13, 2026, down from 6.69% the prior week, according to Freddie Mac’s Primary Mortgage Market Survey. The 15-year fixed rate dropped more sharply, to 5.96% from 6.01%.

The decline ended a run of five consecutive weekly increases in the 30-year rate. Freddie Mac’s average had risen from 6.43% on July 2 to 6.69% on Aug. 6 before retreating by two basis points in the latest survey.

The change is encouraging for rate-sensitive buyers, but it does not amount to a major affordability reset. The 30-year average remains nine basis points above its 6.58% level from the same week in 2025 and 24 basis points above where it stood in early July.

A Small Rate Drop Still Matters to Borrowers

On a hypothetical $400,000, 30-year fixed-rate mortgage, principal and interest at 6.67% would be about $2,573 per month, compared with roughly $2,578 at 6.69%.

That means the latest two-basis-point decline lowers the payment by only about $5 per month before taxes, homeowners insurance and other housing costs.

The comparison with early July is more significant. At 6.43%, the same $400,000 loan would carry principal and interest of roughly $2,510 per month. At 6.67%, the payment is about $63 higher.

Those calculations illustrate why even modest rate swings can affect purchasing power, particularly for buyers already operating near monthly payment or debt-to-income limits.

Freddie Mac said borrowers have continued to respond to relatively small changes in financing costs as housing affordability improves in some areas. Its mortgage-rate benchmark is derived from thousands of loan applications submitted through lenders nationwide and should be viewed as a market average rather than a rate available to every borrower.

Mortgage Applications Responded as Rates Eased

Separate data from the Mortgage Bankers Association showed mortgage demand strengthening as rates began to retreat.

MBA’s Market Composite Index increased 3.6% on a seasonally adjusted basis during the week ending Aug. 7. Purchase applications rose 3% from the prior week, while refinance applications increased 5%.

The average contract rate for a conforming 30-year fixed mortgage in MBA’s survey declined to 6.77% from 6.81%. MBA’s measure differs from Freddie Mac’s survey because the organizations use different methodologies and borrower samples, so their headline rates should not be treated as interchangeable.

The rebound also came with an important qualification: refinance applications remained 22% below their year-earlier level, while unadjusted purchase applications were 1% lower than a year earlier. That suggests a few basis points of relief can generate activity without producing a broad refinancing boom or fully overcoming homebuyer affordability pressures.

Inflation Remains a Key Risk for Mortgage Rates

The inflation picture improved somewhat just before Freddie Mac published its latest rate reading.

The Consumer Price Index rose 3.4% over the 12 months ending in July, easing from 3.5% in June. Core inflation, excluding food and energy, was 2.5% year over year. Consumer prices increased 0.1% during July on a seasonally adjusted basis.

Energy remains a complication. Although the energy index fell 1.5% during July, energy prices were still 14.7% higher than a year earlier, including a 24.6% annual increase in gasoline prices.

That backdrop matters because mortgage rates are influenced by expectations for inflation and longer-term interest rates, rather than simply moving in lockstep with the Federal Reserve’s short-term policy rate.

At its July 29 meeting, the Federal Open Market Committee kept the federal funds target range at 3.50% to 3.75%. The Fed said inflation remained elevated relative to its 2% goal, and three policymakers dissented because they favored a quarter-point rate increase.

What Homebuyers Should Watch Next

The latest decline breaks the recent upward streak, but a two-basis-point move is too small by itself to materially change the affordability picture for most households.

For buyers already shopping, however, the reversal reinforces the value of comparing multiple loan offers and monitoring rates closely. Actual mortgage pricing can differ materially based on the lender, loan program, credit profile, down payment, points and other terms.

The next question is whether 6.67% marks the start of a broader decline or simply a pause after five weeks of increases. With the 30-year average still above both its early-July and year-earlier levels, sustained improvement would require more than one favorable weekly reading.

Freddie Mac’s next weekly mortgage-rate release is scheduled for Thursday, Aug. 20. The direction of inflation, bond markets and broader economic conditions will help determine whether borrowers receive additional relief—or whether rates resume their climb.