US Mortgage Rates Hit 5-Month High

The average contract rate for a 30-year fixed mortgage in the US edged up to 6.79% in the week ended August 28, from 6.78% the previous week, remaining close to the one-year highs reached in late July, according to the Mortgage Bankers Association. The increase followed a rise in Treasury yields as renewed Middle East tensions stoked inflation concerns, while hawkish comments from Federal Reserve Chair Kevin Warsh reinforced expectations for a September rate hike. Mortgage rates have climbed nearly 70bp since the US and Israel began strikes against Iran in late February. Total mortgage applications rose 0.8%, rebounding after two consecutive weekly declines, with purchase applications up 2.2%. Refinancing applications, however, fell 1.1%.

The average contract rate for a 30-year fixed mortgage in the US edged up to 6.78% in the week ending August 21, 2026, from 6.77% the previous week, remaining near the one-year highs reached in late July, according to the Mortgage Bankers Association. The increase followed a rise in Treasury yields as persistent inflation concerns continued to weigh on bond markets, despite the US Treasury Department’s unexpected announcement of a larger bond buyback last week, which had been expected to support demand for government debt. Mortgage rates have climbed nearly 70 bps since the US and Israel launched strikes against Iran in late February, as higher oil prices fueled inflation fears and reinforced expectations that the Federal Reserve will keep rates higher for longer. Total mortgage applications fell 1.0% for a second straight week. Refinancing applications dropped 2.0%, while purchase applications declined 0.3%.

US mortgage rates were little changed last week, with the average contract rate for a 30-year fixed-rate mortgage with conforming balances holding at 6.77%. The stability in borrowing costs provided little incentive for either prospective buyers or existing homeowners to act, with total mortgage application volume slipping just 0.4% from the previous week. Although mortgage rates were unchanged during the week, they remained near the upper end of their recent range and moved slightly higher at the start of this week, suggesting housing activity may remain constrained in the near term. Refinance applications increased 2%, although demand remained subdued as elevated rates continued to discourage borrowers, particularly those with larger loan balances. Meanwhile, applications to purchase homes declined 2% as affordability pressures weighed on demand. Higher monthly payments and broader economic uncertainty are prompting some buyers to delay purchases.