U.S. mortgage rates continued to climb this week, adding pressure to homebuyer affordability as the housing market adjusts to elevated borrowing costs and renewed inflation risks stemming in part from the war involving the U.S. and Iran.
The average rate for a 30-year fixed-rate mortgage rose to 6.69% for the week ended Aug. 6, 2026 from 6.66% a week earlier and 6.63% a year ago, according to Freddie Mac’s Primary Mortgage Market Survey (PMMS). The 15-year fixed-rate mortgage averaged 6.01%, down from 6.04% last week but above its 5.75% level a year ago.
“While mortgage rates continue to influence affordability, the housing market is showing signs of adjustment, with listing prices modestly below year-ago levels and for-sale inventory improving from the limited supply seen in recent years,” said Sam Khater, Freddie Mac’s Chief Economist.
The latest increase comes as financial markets continue to assess the economic consequences of the Iran conflict, particularly its impact on oil prices and inflation. Higher energy costs can put upward pressure on consumer prices, potentially making it more difficult for the Federal Reserve to ease monetary policy aggressively.
Mortgage rates do not move directly with the Federal Reserve’s benchmark interest rate. Instead, they are influenced heavily by longer-term bond yields, particularly the 10-year U.S. Treasury yield. When investors demand higher yields because of inflation or geopolitical risks, mortgage rates can come under upward pressure as well.
That dynamic has added another complication for a housing market already grappling with affordability challenges. Although inventories have improved from the exceptionally tight levels of recent years and listing prices have softened modestly, higher financing costs continue to reduce buyers’ purchasing power.
For prospective homeowners, the difference between today’s mortgage rates and the historically low rates available earlier in the decade remains substantial. Existing homeowners with low-rate mortgages also have less incentive to sell, limiting the supply of homes available to buyers.
The result is a housing market caught between improving supply conditions and persistently expensive financing. Unless inflationary pressures and geopolitical risks ease enough to pull longer-term bond yields lower, mortgage rates could remain elevated, keeping affordability a central issue for the U.S. housing market through the remainder of 2026.
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