30-Year Mortgage Rate Holds at 6.62 Percent as Housing Affordability Slides for Fifth Straight Month

The average 30-year fixed mortgage rate held at 6.62 percent as of August 6, 2026, keeping pressure on homebuyers who have watched affordability erode for five straight months.

Rates have been largely stagnant since May 2026. The Federal Reserve held the federal funds rate steady at its July 29 meeting, citing inflation that remains at 3.5 percent annually, well above its 2 percent target.

The 10-year Treasury yield, which closely tracks mortgage rates, has climbed as investors brace for persistent inflation. Geopolitical tensions in the Strait of Hormuz have added volatility to energy markets, pushing gasoline prices higher after a brief decline in June.

Real estate indices show buyer purchasing power has fallen for five consecutive months through mid-July. Fewer homes are selling, and those that do are sitting on the market longer than they did a year ago.

First-time buyers are feeling the squeeze most acutely. A household earning the median U.S. income of roughly $80,000 per year can afford a home priced at about $280,000 at current rates, according to standard affordability calculations. The median home price in most major metro areas exceeds that figure significantly.

High-yield savings accounts and certificates of deposit continue to attract savers, with top-tier rates reaching approximately 4.15 percent APY as of early August. Financial advisors say savers who are waiting out the housing market are at least earning meaningful returns on their cash.

Economists are divided on when rates will fall. Some expect the Fed to begin cutting in early 2027 if inflation continues to cool. Others say persistent price pressures could keep rates elevated through the end of next year.