Secure Your Reliable Mortgage Rates Now: August 13 2026

Mortgage rates ticked a little lower on Wednesday as inflation eased in July. Despite the slight decline, rates remain close to this year’s highest level, putting pressure on homebuyers waiting for affordability to improve.

Key mortgage rate averages:

• The 30-year fixed rate mortgage averaged 6.6% APR
• The 30-year fixed rate FHA mortgage averaged 7.27% APR
• The 30-year fixed rate VA mortgage averaged 6.28% APR
• The 30-year fixed rate jumbo mortgage averaged 6.78% APR
• The 15-year fixed rate mortgage averaged 5.92% APR
• The 7/6 adjustable-rate mortgage averaged 6.25% APR
• The rate on a HELOC averaged 7.89% APR
• The rate on a home equity loan averaged 8.22% APR

Mortgage rate trends

Mortgage rates are holding steady in the mid-6% range and are likely to remain at that level for the time being. Concerns over rising consumer prices and the ongoing conflict in the Middle East are applying upward pressure on rates, keeping them at their highest level so far this year.

The affordability gains seen earlier this year have largely disappeared. Most housing experts believe rates are likely to end 2026 averaging between 6.4% and 6.5%, higher than they were at the end of 2025. If that scenario holds true, many homebuyers are going to be priced out of the market for the third year in a row.

Which loan is best for you?

When shopping for a mortgage, you may be offered several loan options that will fulfill different needs. Here’s a rundown of the most common loan types you’ll find, and who they work best for.

30-year conventional mortgage: Conventional loans work best for borrowers who have a credit score above 620, have saved enough to make a down payment of at least 3% and are looking for flexibility in the type of property being purchased.

30-year Federal Housing Administration (FHA) mortgage: FHA loans are good for first-time homebuyers, borrowers with less-than-perfect credit scores or those with a high debt-to-income ratio.

30-year U.S. Department of Veterans Affairs (VA) loan: Specifically designed for active duty and retired service members, members of the National Guard and Reserves, and surviving spouses. Offers 0% down loan options, competitive rates and accepts less-than-perfect credit scores.

30-year jumbo loan: Good for homebuyers purchasing property that is priced above the Federal Housing Finance Agency (FHFA) conforming loan limit. In 2026, that limit is $832,750 in most of the U.S. but increases to $1,249,125 in high-cost areas.

15-year fixed-rate loan: Borrowers who prefer a shorter loan term and can afford to make higher monthly payments will pay less overall interest with a 15-year mortgage and pay off the loan faster.

7/6 adjustable rate loan: Good for a buyer who wants to lock in a favorable interest rate for a set period of time and either plans on selling the home before the interest rate starts, is willing to make a higher monthly payment once the rate becomes variable or is open to refinancing the loan.

Home equity line of credit (HELOC): A good option for a homeowner who wants to access the equity they’ve accumulated in their home and have an open line of credit to use as needed.

Home equity loan: Another option for a homeowner who wants to access their home equity and have the financial capacity to take on a second mortgage.

How mortgage rates affect affordability

The rate on your mortgage can make a big difference in how much home you can afford and the size of your monthly payments. That’s true whether buying your primary residence, an investment property or refinancing an existing loan.

Here’s an example. If you bought a $250,000 home and made a 20% down payment of $50,000, you would end up with a starting loan balance of $200,000. On a $200,000 home loan with a fixed rate for 30 years, here’s what you would pay:

• At a 3% interest rate = $843 in monthly payment (not including taxes, insurance, or HOA fees)
• At a 4% interest rate = $955 in monthly payment (not including taxes, insurance, or HOA fees)
• At a 6% interest rate = $1,199 in monthly payment (not including taxes, insurance, or HOA fees)
• At an 8% interest rate = $1,468 in monthly payment (not including taxes, insurance, or HOA fees)

Experimenting with a mortgage calculator allows you to find out how much a lower rate or other changes could impact what you pay. A home affordability calculator can also estimate the maximum loan amount you may qualify for based on your income, debt-to-income ratio, mortgage interest rate and other variables. The Consumer Financial Protection Bureau can also provide a range of rates offered by lenders in each state.

Current mortgage rates FAQs

What is a 30-year mortgage rate right now?

The average rate on a 30-year fixed-rate loan is 6.6% as of August, according to Money’s rate data. Other rate surveys show 30-year rates averaging above 6.7%.

Can you get a 4% mortgage rate?

No, not under current market conditions. A 30-year fixed-rate loan is averaging in the mid-to-6% range as of August 12.

Will we ever see a 3% mortgage rate again?

It is unlikely that mortgage rates will fall below 3% in the near term, unless a severe economic downturn occurs. However, rates were averaging in the mid-3% range prior to the pandemic, so a return to that range at some point in the future is not entirely out of the question.

How much is a $300,000 mortgage at 7%?

The monthly payment on a 30-year, $300,000 conventional mortgage at 7% is $1,995.91, excluding taxes, insurance and HOA fees. Your actual payment will vary depending on your credit score, down payment, lender and location, among other factors.