FX.co ★ US Mortgage Rates Hold Near One-Year Highs

The average contract rate on a 30-year fixed mortgage in the US inched up to 6.78% in the week ending August 21, 2026, from 6.77% the previous week, holding near the one-year highs set in late July, according to the Mortgage Bankers Association. The uptick came on the back of higher Treasury yields, as persistent inflation concerns continued to pressure bond markets, despite the US Treasury Department’s unexpected move to increase its bond buyback program last week—a step that had been expected to bolster demand for government debt. Mortgage rates have risen by nearly 70 basis points since the US and Israel began strikes against Iran in late February, with higher oil prices stoking inflation fears and strengthening expectations that the Federal Reserve will keep interest rates elevated for longer. Total mortgage applications fell 1.0% for the second consecutive week, with refinancing applications down 2.0% and purchase applications slipping 0.3%.