Some offers on this page are from advertisers who pay us, which may affect which products we write about, but not our recommendations. See our Advertiser Disclosure . When will mortgage rates go down from a more than one-year high? E. Napoletano Contributor Hal Bundrick, CFP Senior Writer Thu, August 6, 2026 at 4:17 PM PDT 8 min read Mortgage rates inched higher again this week after stalling in the mid-sixes for two months. What will it take for mortgage rates to move lower? See today's best rates. Are mortgage rates dropping? As of August 5, Freddie Mac reported that the average 30-year fixed-rate mortgage rate was 6.69%. This is three basis points higher than last week. At this time in July 2025, mortgage rates averaged 6.63%, six basis points lower The average 15-year fixed mortgage rate this week was 6.01%, down three basis points from last week, and 26 basis points higher than this time last year. Here's the Freddie Mac data on mortgage rates for the past 52 weeks as of July 23, 2026: 30-year fixed-rate mortgage: 5.98% to 6.69% 15-year fixed-rate mortgage: 5.35% to 6.04% Will mortgage rates trend down by the end of 2026? Mortgage rates generally move in unison with the bond market. The 10-year Treasury yield has been hovering above 4.5% for a month, and home loan rates are following suit. Realtor.com chief economist Danielle Hale doesn't expect much movement in mortgage rates anytime soon, noting this week's small step higher marks the first time in 44 weeks that rates have been reported higher than a year earlier. "Recent mortgage rate volatility makes it a challenging time for homebuyers to navigate the market, especially as this volatility is coming at the upper end of the mortgage rate range we've seen over the last year," Hale said in a statement. "The best way to navigate the fluctuations is to rate-test your budget, so you know how small changes in mortgage rates will affect your total monthly housing payment." Meanwhile, Fannie Mae's latest forecast expects mortgage rates to remain in the 6.2% to 6.3% range through 2027. The Fed is unlikely to play a role this year The Federal Reserve lowered the fed funds rate three times in 2025, but the central bank has been on hold so far in 2026, including its most recent meeting on July 29. So, what does this mean for mortgage rates through the end of the year? That federal funds rate tends to directly influence rates on shorter-term lending. While mortgage rates aren't directly based on the fed funds rate, they typically mirror fed funds rate trends. So, if the fed funds rate goes up, mortgage rates will likely follow. The inverse is also true. The Fed the common nickname for the Federal Open Market Committee (FOMC ) has a new chairman, Kevin Warsh, but the same game plan: keep rates unchanged for now. At this point, Wall Street traders generally expect a quarter-point interest rate hike in September. Dig...
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