Mortgage Rates Hold Steady Near 6.7% Amid Fed Pause

Mortgage rates have remained elevated at around 6.7% in early August 2026, according to Freddie Mac, despite some fluctuations between 6.5% and 6.8%. The Federal Reserve's decision to hold its benchmark federal funds rate at 3.5%-3.75% has been seen as a signal that there will be no interest rate cuts through the end of 2026.

This pause in Fed policy has disrupted expectations of modest rate declines through 2026, with Fannie Mae's June 2026 Housing Forecast projecting 30-year fixed mortgage rates to hover at 6.4% for the rest of the year.

The sustained elevation in mortgage rates is putting pressure on housing affordability, especially for first-time buyers. According to the National Association of Home Builders, when interest rates increase from 6.5% to 6.75%, around 1.13 million households are priced out of the market.