Mortgage Rates Hold Near 6.7 Percent as Housing Affordability Remains Strained
The 30-year fixed-rate mortgage averaged 6.69 percent for the week ending August 6, 2026, according to Freddie Mac. Rates have shown little movement since May, and most analysts do not expect them to fall below 6 percent in the near term. Home prices remain high, and the Federal Reserve held its benchmark rate steady at its July 29 meeting.
The 30-year fixed-rate mortgage averaged 6.69 percent for the week ending August 6, 2026, according to Freddie Mac's Primary Mortgage Market Survey. Bankrate's survey of large lenders placed the average slightly lower at 6.63 percent around the same time.
Rates have shown little movement since May. The Federal Reserve held its benchmark rate steady at its July 29 meeting, citing inflation that remains above its 2 percent target. Consumer prices dropped 0.4 percent in June, the largest one-month decline since April 2020, but overall prices are still 3.5 percent higher than a year ago.
Geopolitical tensions involving the Strait of Hormuz pushed gasoline prices higher in July, adding uncertainty to inflation expectations and bond yields, which influence mortgage rates.
The housing market is showing a split pattern. Luxury home sales are rising while buyers of starter homes continue to struggle with affordability. Home prices remain elevated, and the combination of high prices and high monthly payments is keeping many potential buyers on the sidelines.
Most analysts do not expect rates to fall below 6 percent in the near term. Forecasts for the rest of the year suggest rates will likely stay between 6 and 7 percent.
Experts advise potential buyers to focus on whether they can comfortably manage monthly payments rather than waiting for a lower rate that may not arrive. For existing homeowners, refinancing is generally considered worthwhile only if the new rate is at least 0.50 to 0.75 percentage points lower than the current rate.
