Although it’s not a significant decrease, mortgage interest rates are lower today.
According to rates provided to BW by Zillow, the average interest rate on a 30-year, fixed-rate mortgage is now 6.56% APR. This is one basis point lower than yesterday and unchanged from a week ago. (See our chart below for more details.) A basis point is one one-hundredth of a percentage point.
For more information on what the government is doing about interest rates, continue reading below the chart.
Average mortgage rates, last 30 days
🤓 Kate on Rates: August 20, 2026
📈 What influences mortgage rates?
Last Wednesday, the Department of the Treasury announced an increase in the scale of its buybacks for longer-term bonds from $2 billion to $4 billion. This move aims to lower bond yields by boosting demand, which should lead to lower prices.
Lenders compare 30-year mortgage rates to the yield on the 10-year Treasury note. When Treasury yields increase, mortgage rates also rise. The recent surge in yields on longer-term Treasury bonds has led to higher mortgage rates.
The Treasury’s efforts to influence demand for longer-term bonds through increased buybacks have not had a significant impact due to other factors driving up yields, such as shifting foreign investments and inflation concerns.
If there is a surprise in either direction with PCE, it could potentially impact market expectations regarding the Fed. Refinancing may be a good idea if current rates are at least 0.5 to 0.75 of a percentage point lower than your current rate, especially if you plan to stay in your home long enough to recoup closing costs. Considering current rates, it might be a good time to consider refinancing if your current rate is around 7.06% or higher. Think about your goals – whether you want to lower your monthly payment, shorten your loan term, or access home equity. Use tools like BW’s refinance calculator to estimate savings and break-even points. When it comes to shopping for a home, the right time is when you can comfortably afford a mortgage at current rates. Don’t worry too much about potentially missing out on lower rates in the future, as you can always refinance later. Focus on getting preapproved, comparing offers, and figuring out a monthly payment that fits your budget. Consider locking in your mortgage rate if you have a quote you’re happy with, especially if your lender offers a float-down option to take advantage of better rates. Remember that advertised rates are usually sample rates for borrowers with perfect credit, large down payments, and paying for mortgage points. following sentence:
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