Higher Mortgage Rates Put Fresh Pressure On Homebuyers

Mortgage rates climbed to their highest level in three weeks last week, putting additional pressure on an already subdued U.S. housing market.

According to the Mortgage Bankers Association, the average rate for a 30-year fixed mortgage with a conforming balance rose to 6.78%, up from 6.77% the previous week. Total mortgage application volume declined 1%.

The report said higher borrowing costs have contributed to slower housing activity, with Federal Housing Administration applications declining 7% during the week. MBA economist Joel Kan said purchase activity has also weakened over the past two months.

However, mortgage rates moved lower this week, according to Mortgage News Daily. The report attributed Tuesday’s decline to falling oil prices and lower Treasury yields, which tend to influence mortgage rates. Less competition from cash buyers could also give financed buyers more opportunities.

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— CNBC (@CNBC) August 26, 2026

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