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Monday, August 17
Personal Finance

Mortgage Rates Today, Monday, August 17: A Little Jolt

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Mortgage rates are beginning the week slightly higher, with potential for further increases. Today marks the end of the 60-day negotiation window outlined in the memorandum of understanding signed by the U.S. and Iran back in June. Any negative developments in this conflict tend to push mortgage rates up.

The average interest rate on a 30-year fixed-rate mortgage has risen to 6.63% APR, as reported by Zillow to BW. This is 10 basis points higher than Friday and five basis points higher than last week. (Refer to the chart below for more details.) A basis point is equivalent to one one-hundredth of a percentage point.

While mortgage rates have been reactive to events in the Iran war, recent trends have shown a return to normal responses to domestic data and Federal Reserve actions. To learn more about these dynamics, continue reading below the chart.

Average mortgage rates over the last 30 days

📈 What factors influence mortgage rates?

Mortgage rates are constantly changing due to various factors such as reactions to new inflation reports, job numbers, Fed meetings, global news, and more. Even minor changes in the bond market can impact mortgage pricing.
Last week’s Consumer Price Index indicated a slight decrease in annual inflation from 3.5% in June to 3.4% in July. While still above the Federal Reserve’s 2% target, this data suggested a lower likelihood of a rate hike in September.
If inflation appears to be moderating on its own and the job market shows signs of weakness, the case for raising rates becomes less compelling. The Fed aims for maximum employment and price stability, adjusting rates accordingly.
The Federal Reserve does not directly set mortgage rates; however, changes to its federal funds rate can have widespread effects on the economy. Anticipation of Fed actions can influence mortgage lenders to adjust rates preemptively.

The Nerds are eagerly awaiting the Federal Reserve’s July meeting minutes, scheduled for release on Wednesday. While rates remained steady in July, three officials dissented in favor of a quarter-point increase. The minutes may provide insight into the reasoning behind these dissenting views.

If the likelihood of a rate hike in September or subsequent Fed meetings increases, mortgage rates could face upward pressure. Given the current scenario, stable rates may be the most favorable outcome.

Changes in the Iran conflict could also impact mortgage rates, with escalating tensions leading to rate hikes and de-escalation potentially causing rates to fall.

🤓 Kate on Rates: August 13, 2026

Considering refinancing may be beneficial if today’s rates are at least 0.5 to 0.75 percentage points lower than your current rate, provided you intend to stay in your home long enough to recoup closing costs.

Given the current rate environment, exploring a refinance could be warranted if your existing rate is around 7.13% or higher.

Additionally, consider your objectives: whether you aim to lower monthly payments, shorten the loan term, or leverage home equity for cash. Depending on your goals, you may be willing to accept a higher rate for a cash-out refinance compared to a rate-and-term refinance, as long as overall costs are lower.
Use BW’s refinance calculator to estimate potential savings and determine the breakeven point for refinancing costs.

🏡 Is it time to start house hunting?

The ideal timing to begin shopping for a home varies, focusing on whether you can comfortably afford a mortgage at current rates.

If affordability aligns with your financial situation, prioritize getting preapproved, comparing lender offers, and determining a suitable monthly payment within your budget constraints.
Utilize BW’s affordability calculator to estimate potential monthly payments. If purchasing a new home isn’t feasible at present, concentrate on reducing existing debts and building savings for a down payment. These actions can improve your financial profile and potentially secure a better interest rate when ready to buy.

🔒 Should I lock my rate?

If you already have a quote you’re happy with, you should consider locking your mortgage rate, especially if your lender offers a float-down option. A float-down lets you take advantage of a better rate if the market drops during your lock period.

Rate locks protect you from increases while your loan is processed, and with the market forever bouncing around, that peace of mind can be worth it.

🤓 Nerdy Reminder: Rates can change daily, and even hourly. If you’re happy with the deal you have, it’s okay to commit.

🧐 Why is the rate I saw online different from the quote I got?

The rate you see advertised is a sample rate — usually for a borrower with perfect credit, making a big down payment, and paying for mortgage points.

following sentence using different words:

Original: She decided to take a nap because she was feeling tired.

Rewritten: Due to her fatigue, she opted to rest and take a nap.

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