WASHINGTON, DC — Mortgage rates are ending the 2026 selling season without much improvement, and that has kept the housing market under pressure. Freddie Mac said on Aug. 20 that the average 30-year fixed mortgage rate was 6.65%, down just two basis points from the prior week. The average 15-year fixed rate was 5.95%, one basis point lower than the week before.
The article says year-over-year purchase volume is down 3.4%, based on an analysis by investment bank Keefe, Bruyette & Woods. It also notes that the 30-year average was 6.58% at this point in July 2025, while the 15-year rate was 26 basis points higher than a year earlier. Those figures frame a market that is still expensive for borrowers and not offering much immediate relief.
What The Data Shows
The latest rate readings point to a market that is moving only slightly from week to week. Freddie Mac’s Aug. 20 report put the 30-year fixed mortgage rate at 6.65% and the 15-year fixed at 5.95%. The story also cites Freddie Mac data for the 52 weeks ending Aug. 13, 2026, showing a range of 5.98% to 6.69% for the 30-year loan and 5.35% to 6.04% for the 15-year loan.
KBW managing director Bose George said mortgage application volume should remain weak because of the recent rise in rates. In his view, refinance activity is likely to stay low, while purchase demand is slowing from both higher borrowing costs and the seasonal lull as the selling period winds down. Fannie Mae’s August forecast is even more cautious, projecting mortgage rates to stay in the 6.8% range through 2027.
Why Rates Are Stuck
The piece ties mortgage pricing to the bond market, especially the 10-year Treasury yield. That yield has climbed over the past month, and home loan rates have followed the same direction. On Aug. 19, the 10-year Treasury yield closed at 4.65%, up from 4.33% a year earlier. The article explains that lenders add a spread on top of that benchmark to cover costs and risk.
It says that spread widened over the past few years and has remained near two percentage points even after narrowing a bit recently. As an example, the story points to the gap between the 6.65% average 30-year mortgage rate and the 4.65% Treasury yield. It also says the Federal Reserve has been on hold in 2026, including at its July 29 meeting, and that traders do not expect a quarter-point move until December at the earliest.
What Buyers Face Next
For buyers, the report suggests waiting for a sharp drop may not be a reliable plan. It notes that mortgage rates are only one part of affordability, because home prices still matter and housing supply remains tight in many places. The article cites Federal Reserve Bank of St. Louis data showing the median sale price of single-family homes rising from $208,400 in the first quarter of 2009 to $410,700 in the second quarter of 2026.
The piece says buyers who want to move forward may need to work within their budget, even if that means considering smaller homes, condos, fixer-uppers, longer commutes, or rate buydowns. Readers can check the original sources directly through Freddie Mac, Fannie Mae, KBW, the Federal Reserve, and the Federal Reserve Bank of St. Louis. The report leaves open how much rates may move by year-end, but it does not point to a near-term break in the market.
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