Mortgage rates are holding near one-year highs at 6.76%, as persistent inflation and geopolitical tensions continue to pressure borrowing costs. The 30-year fixed-rate mortgage averaged 6.76% according to recent surveys, marking the highest level since August 2025, though rates retreated slightly to the mid-6% range by early August.
The 30-year fixed-rate mortgage averaged 6.69% for the week ending August 6, 2026, according to Freddie Mac, up from 6.66% the previous week. Bankrate’s latest survey showed rates at 6.63% as of August 5, reflecting a modest dip from earlier peaks but still well above the 2026 low of 6.09% recorded in February.
Mortgage rates have been creeping upward this summer as a result of renewed geopolitical tensions, according to MarketWatch. Oil prices spiked amid the conflict in Iran, pushing inflation up and lifting mortgage rates from their 2026 low. Inflation retreated in June to 3.8%, but energy costs remain elevated and continue to add pressure to household budgets, affecting mortgage pricing.
The Federal Reserve maintained its benchmark rate at 3.5% to 3.75% at its most recent meeting and has kept rates steady throughout 2026. However, rising inflation has been the main driver of higher mortgage rates, with the consumer price index pushing well above the Fed’s 2% target. The CME FedWatch tool predicts a 63% probability of a rate hike at the next Fed meeting in September, according to MarketWatch.
What This Means for Homebuyers
Housing economists no longer expect mortgage rates to fall below 6% in the near future, a reality that’s affecting home sales. Higher mortgage rates, combined with still-record home prices and persistent inflation, are likely to push the brakes further on housing activity, according to Bankrate.
Experts predict mortgage rates will remain in the mid-6% range through the rest of August and beyond. Michael Pearson, senior vice president of business development at AD Mortgage, says rates will remain mostly flat with slight movements up and down. Tony Davis, managing partner at Atlantic Home Mortgage, predicts the 30-year fixed rate will fall somewhere between 6.4% and 6.8%, with enough volatility to satisfy both optimists and pessimists, according to MarketWatch.
For homebuyers and owners, the key is to focus on finding a home that fits their long-term plans rather than trying to time perfect rates. Jeff DerGurahian, head economist at loanDepot, notes that refinancing remains an option if rates move lower down the road, and that a drop in mortgage rates may bring more competition rather than lower home prices.
Sources
- Bankrate — 30-year fixed mortgage rate at 6.63% as of August 5, 2026; context on inflation, oil prices, and Federal Reserve policy
- Freddie Mac — 30-year fixed-rate mortgage averaged 6.69% for the week ending August 6, 2026
- MarketWatch — Mortgage rates creeping upward due to geopolitical tensions, reaching 6.76% in July; expert predictions on future rate movements
- NPR — Mortgage rates hit one-year high driven by war and inflation concerns as of July 30, 2026
- Fox Business — Mortgage rates rise to one-year high
