U.S. mortgage rates were higher last week, with the average 30-year fixed conforming rate climbing to 6.78%, the most in three weeks. The rise is compounding pressures on purchasers already confronted with high housing prices and affordability issues.
Overall, mortgage applications decreased 1% in the week ended Aug. 21, 2026, according to the most recent data from the Mortgage Bankers Association. The move underscores how delicate the housing market continues to be to even small shifts in the cost of borrowing.
The demand for home-buying continues to fall.
The latest figures suggest persistent softness in U.S. homebuyer demand. Purchase applications were down 0.3% on a seasonally adjusted basis for the week, and were down 2% on an unadjusted basis from the previous week.
Purchase applications fell 5% from the same week last year, more importantly. That means that higher mortgage rates are still keeping potential buyers on the sidelines even as the summer property market enters its slower season.
Borrowing costs are rising, hurting affordability
The spike in mortgage rates comes at a challenging moment for Americans looking to get into the property market. A spike in the mortgage rate might translate to a big jump in monthly payments for buyers purchasing homes in pricey U.S. metro areas.
The average 30-year conforming mortgage rate was 6.77% and 6.78% respectively and the average rate for 30-year jumbo loans was 6.73%. 30-year mortgage rates backed by the FHA jumped to 6.46%.
Also sees a fall in demand for refinancing
Homeowners trying to refinance are likewise turning back as borrowing costs are rising. The MBA said its refinance index fell 2% in the last week and was down 17% from a year ago.
Refinancing has proven tough since many homeowners still had far lower mortgage rates from earlier years. So for many existing homeowners, it probably doesn’t make a lot of sense financially to switch to a new loan at today’s rates.
Freddie Mac Says Rates Remain High
Freddie Mac said in a separate weekly survey that the average 30-year fixed mortgage rate was 6.65% August 20, down slightly from 6.67% the prior week. That figure differs from the MBA’s 6.78% contract rate, but both data sets show U.S. mortgage rates are still much above 6%.
Freddie Mac also said the 15-year fixed rate averaged 5.95 percent, down from 5.96 percent a week earlier.
Fall of 2023: A Hard Fall for Housing Market
That might be another tough chapter for the U.S. home market, with higher mortgage rates and fewer applications for purchases. “Buyers may still be waiting for better financing terms, while sellers may be facing longer days on market if demand stays soft.
At the same hand, reduced competition among buyers could eventually translate into greater negotiation power for consumers who are financially ready to buy. Mortgage rate direction in the next months will continue to be one of the biggest variables for the U.S. housing market.
Sources
- Mortgage Bankers Association — Latest mortgage application data shows a 1% weekly fall, and softer purchase activity
- Association HousingWire — 6.78% 30-year rate and 5% year-over-year fall in buy applications. HousingWire
- Freddie Mac — The official weekly mortgage-rate statistics showed the 30-year fixed rate at 6.65% on Aug. 20.
