The average 30-year fixed mortgage rate fell to 6.67% as of August 13, 2026, marking the lowest level in nearly four weeks and snapping a six-week streak of increases. The Producer Price Index for final demand was unchanged in July, seasonally adjusted, coming in well below the 0.2% increase economists had forecast and signaling that wholesale inflation pressures are easing.
The drop in rates offers a measure of relief to homebuyers and refinancers who have watched borrowing costs climb steadily since late June, when geopolitical tensions and rising oil prices fueled inflation concerns. Mortgage rates dropped noticeably on Thursday on a combination of lower oil prices and a lower inflation reading via the Producer Price Index (PPI), according to Mortgage News Daily. The yield on the 10-year US Treasury note was at 4.65%, extending the pullback from last session after the US inflation rate refrained from surpassing expectations.
The cooler inflation data and falling bond yields have created a more favorable environment for mortgage rates, though they remain elevated compared to the lows seen earlier this year. For borrowers who have been waiting on the sidelines, this week’s drop may signal a window of opportunity.
The numbers
How much rates actually fell this week
Multiple data sources confirm the downward trend across loan types
Freddie Mac reported an average 30-year fixed-rate mortgage of 6.67% on August 13, 2026, compared with 6.69% a week earlier and 6.58% a year ago. The official Freddie Mac survey, which tracks conventional loans for borrowers with excellent credit and 20% down, is considered the industry benchmark.
The 15-year fixed-rate mortgage averaged 5.96%, down from 6.01% the prior week. Daily rate trackers showed even steeper declines: the 30-year fixed dipped a modest 7 basis points to 6.58%, while the 15-year fixed ticked up just slightly to 6.01% according to Zillow data published Thursday morning. Adjustable-rate mortgages saw the biggest moves, with the 5/1 ARM swinging 20 basis points lower to 6.31%.
The week’s rate changes
30-year fixed: 6.67% (down from 6.69%)
15-year fixed: 5.96% (down from 6.01%)
5/1 ARM: 6.31% (down 20 basis points)
30-year FHA: 6.06% (various lenders)
All figures represent national averages for borrowers with strong credit. Your rate will depend on your credit score, down payment, loan size, and the lender you choose.
What happened
The inflation data that moved the market
Two key reports in two days shifted the outlook for rates
Thursday’s Producer Price Index report was the second piece of good inflation news this week. The producer price index was flat in July compared with expectations for a 0.2% increase, and was unchanged for the month, below the 0.2% Dow Jones consensus estimate. Excluding food and energy, the core PPI rose 0.2%, against the forecast for a 0.3% gain.
The day before, the Consumer Price Index showed similar cooling. Data released Wednesday showed US consumer inflation slowed for a second consecutive month to 3.4% in July, while rising just 0.1% from the previous month. Together, the two reports suggest that the inflation spike driven by Middle East tensions and higher oil prices may be moderating.
Crude oil fell to around $81 a barrel on Thursday, after five consecutive sessions of gains, providing additional relief to inflation expectations. Rates are driven by bonds and bonds are highly responsive to the outlook for inflation and the economy. When inflation data comes in cooler than expected, bond yields fall, and mortgage rates typically follow.
You can review the official PPI data on the Bureau of Labor Statistics website, which publishes the monthly Producer Price Index report at 8:30 a.m. Eastern on the second Tuesday of each month.
The bigger picture
What this means for your home purchase
Rates are down from recent highs, but still elevated by historical standards
This week’s drop breaks a discouraging trend. Mortgage rates edged down this week, snapping a six-week streak of gains, after weak jobs data and signs of cooling inflation lowered the odds that the Federal Reserve will hike benchmark interest rates next month. Markets now see around a 40% chance of a 25 basis point rate hike from the Federal Reserve in September, down from nearly 50% a day earlier.
Still, rates remain higher than they were a year ago and well above the lows seen in early 2026. On Feb. 26 — two days before the U.S. and Israel attacked Iran — the 30-year rate finally fell below 6%, giving potential homebuyers hope. Since then, geopolitical tensions and persistent inflation have pushed rates back up.
The Federal Reserve does not set mortgage rates directly, but its policy decisions heavily influence them. The combination of a weakening job market and easing inflation lessens pressure on the Fed to raise interest rates at its September meeting. The Fed doesn’t directly control mortgage rates, but expectations about its policy decisions can influence them. For now, the data suggests the Fed may hold rates steady, which would be positive for mortgage borrowers.
If you’re shopping for a mortgage, remember that the national average is just a starting point. The PMMS tracks conventional, conforming, fully amortizing home purchase loans for borrowers with 20% down and excellent credit. Borrowers with lower credit scores, smaller down payments, or higher debt-to-income ratios will see higher rates. On the other hand, shopping around can save you thousands: Freddie Mac research shows that getting just one extra rate quote saves borrowers about $600 over the life of the loan, and three quotes can save up to $1,200.
For help understanding how much house you can afford at today’s rates, see our affordability guide. If you’re a first-time buyer, our first-time buyer’s guide walks through the entire process. And if current rates still feel too high, explore down payment assistance programs and other strategies to lower your monthly payment.
Quick answers
Mortgage rates and inflation: common questions
Why did mortgage rates drop this week?
Rates fell after the July Producer Price Index came in flat, well below the 0.2% increase economists expected. Combined with Wednesday’s Consumer Price Index showing inflation cooling to 3.4%, and a drop in oil prices, bond yields declined and mortgage rates followed. Cooler inflation reduces pressure on the Federal Reserve to raise interest rates, which is positive for mortgage borrowers.
Are mortgage rates going to keep falling?
It’s impossible to predict with certainty. Rates will depend on upcoming economic data, Federal Reserve decisions, and geopolitical developments—especially tensions in the Middle East that affect oil prices. The Fed’s next meeting is in September, and one more month of inflation data will be released before then. If inflation continues to cool, rates could drift lower; if it reaccelerates, rates may climb again.
What is the Producer Price Index and why does it matter for mortgages?
The PPI measures the change in prices that producers receive for goods and services. It’s a leading indicator of consumer inflation because producers often pass cost increases along to consumers. When the PPI is lower than expected, it signals that inflation pressures are easing, which typically leads to lower bond yields and mortgage rates. The PPI is released monthly by the Bureau of Labor Statistics.
Is 6.67% a good mortgage rate?
It depends on context. By historical standards since 1971, when Freddie Mac began tracking rates, the long-term average is 7.68%, so 6.67% is below that. However, it’s significantly higher than the sub-3% rates available in 2020-2021, and higher than the below-6% rates seen briefly in early 2026. Whether it’s “good” for you depends on your local market, your financial situation, and whether waiting for lower rates means missing out on a home you want.
Should I wait for rates to drop more before buying?
Trying to time the market is risky. Rates could fall further if inflation continues to cool, but they could also rise if geopolitical tensions flare up or economic data comes in hotter than expected. Meanwhile, home prices in many markets continue to rise, which can offset any savings from lower rates. If you find a home you can afford at today’s rates, and it meets your needs, buying now and refinancing later if rates drop is often a better strategy than waiting indefinitely.
How do I get the lowest rate available?
Shop around. Get quotes from at least three lenders, including your bank, a credit union, and an online lender. Improve your credit score if possible—even a small increase can lower your rate. Save for a larger down payment; 20% down avoids private mortgage insurance and typically qualifies you for better rates. Lock your rate when you’re satisfied, and ask about discount points if you plan to stay in the home long-term. See our mortgage financing guide for detailed strategies.