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U.S. mortgage rates moved slightly lower this week, offering homebuyers modest relief as the average 30-year fixed mortgage rate fell to 6.65%. However, the U.S. 10-year Treasury yield remains near 4.70%, creating a risk that mortgage rates could stay elevated or turn higher again.
What Are Mortgage Rates Today?
Freddie Mac’s latest Primary Mortgage Market Survey showed the average 30-year fixed mortgage rate at 6.65% as of Aug. 20, down from 6.67% a week earlier.
The average 15-year fixed mortgage rate also edged lower to 5.95% from 5.96%.
A year earlier, the 30-year rate stood at 6.58%, while the 15-year rate averaged 5.69%. That means borrowing costs remain slightly higher than they were at the same point in 2025 despite the latest weekly decline.
U.S. 30-Year and 15-Year Mortgage Rates: Source: Freddie Mac Primary Mortgage Market Survey
The chart shows that mortgage rates declined late last year and in early 2026 before reversing higher during the spring and summer. The latest dip from 6.69% to 6.67% and now 6.65% offers some relief, but it does not yet signal a major downward trend.
10-Year Treasury Yield Keeps Pressure on Mortgage Rates
The bond market remains one of the biggest obstacles to a sustained decline in mortgage rates.
The supplied TradingView chart showed the U.S. 10-year Treasury yield at about 4.70% early Friday, Aug. 21. The yield remains above its 50-day exponential moving average near 4.60%, while the daily relative strength index sits around 55.
U.S. 10-Year Treasury Yield Holds Near 4.70%: Source: TradingView
The chart shows a broader upward trend since the March lows. A sustained move above the recent 4.70% area could place fresh upward pressure on mortgage borrowing costs. Conversely, a retreat in Treasury yields would improve the chances of lower mortgage rates.
Mortgage rates do not move directly with the Federal Reserve’s policy rate. Instead, lenders closely watch longer-term Treasury yields and mortgage-backed securities when setting home-loan rates.
Mortgage Demand Remains Under Pressure
High borrowing costs continue to affect housing demand.
The Mortgage Bankers Association said total mortgage applications fell 0.4% in the week ended Aug. 14. Purchase applications declined 2%, while refinance applications increased 2%.
MBA’s separate survey put the average contract rate for a conforming 30-year fixed mortgage at 6.77%. MBA and Freddie Mac use different methodologies, so their mortgage-rate readings are not directly comparable.
New-home activity also weakened. MBA reported Thursday that applications to purchase newly built homes fell 5.7% from a year earlier in July. Its estimated seasonally adjusted annual rate of new-home sales declined to 647,000.
Mortgage Rates Remain High by Recent Standards
A longer-term view shows how dramatically the mortgage market changed after the exceptionally low rates recorded around 2020 and 2021.
U.S. 30-Year Fixed Mortgage Rate: Source: Federal Reserve Bank of St. Louis FRED
The historical chart shows mortgage rates peaking above 18% in the early 1980s before trending lower over several decades. Rates reached historic lows around 2021, then climbed rapidly as inflation and Federal Reserve tightening reshaped the interest-rate environment.
Will Mortgage Rates Go Down in 2026?
The near-term outlook remains mixed.
Freddie Mac’s latest readings show a modest decline, but the 10-year Treasury yield remains elevated. The Federal Reserve also kept its federal funds target range at 3.50%-3.75% at its July meeting, while July consumer inflation was still 3.4% year over year.
A sustained decline in Treasury yields and inflation expectations would improve the outlook for mortgage rates. Until that happens, the 30-year fixed rate is more likely to remain volatile around current levels than enter a clear, sustained decline.