Mortgage rates decreased slightly today due to positive economic news: lower inflation and lower oil prices. These factors have had a positive impact on the bond market, which in turn affects mortgage rates.
The average interest rate on a 30-year fixed-rate mortgage dropped to 6.53% APR, according to rates provided by Zillow to BW. This is three basis points lower than yesterday and one basis point lower than a week ago. (Refer to the chart below for more details.) A basis point is equivalent to one one-hundredth of a percentage point.
While the change in rates was minimal, if you are in the market for a home or considering refinancing, it might be a good time to start monitoring rates more closely. Even if rates are not decreasing daily, a downward overall trend could signal a favorable time to act.
Keep in mind that markets are closed on weekends, so the rates you see on Friday are unlikely to change significantly until Monday.
š¤ Kate on Rates: August 14, 2026
Average mortgage rates, last 30 days
š What influences mortgage rates?
Mortgage rates are constantly changing, as they are influenced by various factors such as inflation reports, job numbers, Fed meetings, and global news. Even small changes in the bond market can impact mortgage pricing.
Recent stability in mortgage rates is partly attributed to this week’s Consumer Price Index. In July, annual inflation eased slightly to 3.4% from 3.5% in June. While the improvement was modest, it aligned with expectations, which tends to be favorable for the market.
Looking ahead, the Nerds are keeping an eye on the Federal Reserve’s July meeting minutes, scheduled for release on Wednesday. In July, the Fed maintained rates, but three officials advocated for a quarter-point increase. The minutes could provide more clarity on the Fed’s concerns regarding inflation, which, although improving, remains above the 2% target. Additionally, the minutes may indicate whether there is broader support for raising rates at the September meeting.
Although the Fed does not directly control mortgage rates, speculations about potential rate changes can prompt mortgage lenders to adjust their rates preemptively. This anticipation of Fed actions can influence mortgage pricing.
Weekly jobless claims data will offer fresh insights into the labor market on Thursday. Any signs of increased layoffs could complicate the case for a September rate hike, while a strong labor market performance could give the Fed more leeway to focus on inflation. Both scenarios could impact mortgage rates depending on investors’ reactions to the Fed’s policy direction.
If today’s rates are at least 0.5 to 0.75 of a percentage point lower than your current rate, refinancing may be a viable option (especially if you plan to stay in your home long enough to recoup closing costs).
Considering current rates, it may be worth exploring a refinance if your existing rate is around 7.03% or higher.
Additionally, assess your objectives: Are you aiming to reduce your monthly payment, shorten your loan term, or leverage home equity for cash? Depending on your goals, you may prioritize different aspects of a refinancing deal.
For those seeking lower rates, BW’s refinance calculator can help estimate potential savings and determine the break-even point for refinancing costs.
š” Should I start shopping for a home?
The ideal time to start shopping for a home is when you can comfortably afford a mortgage at current rates.
If you can afford a mortgage now, focus on getting preapproved, comparing lender offers, and determining a monthly payment that aligns with your budget. Avoid fixating on potential rate fluctuations, as refinancing remains an option in the future.
BW’s affordability calculator can assist in estimating your monthly payment. If purchasing a new home is not on the immediate horizon, take steps to improve your financial standing by paying off debts and saving for a down payment, which can lead to better interest rates when you are ready to buy.
š Should I lock my rate?
If you have received a satisfactory rate quote, consider locking your mortgage rate, especially if your lender offers a float-down option. Rate locks safeguard against rate increases during the loan processing period, providing peace of mind amidst market volatility.
Given the daily and hourly fluctuations in rates, it is prudent to stay informed and proactive in monitoring mortgage rate movements.
š¤ Nerdy Reminder: Rates can change daily, and even hourly.
If you are satisfied with the agreement you have, it is acceptable to make a commitment. sentence: Please make sure to complete the form before the deadline.
Ensure that you fill out the form by the specified deadline.
