Mortgage rates ease slightly, but the mid-6s may be here to stay
For the mortgage market, that leaves inflation expectations unsettled and rate relief elusive.
Sam Khater of Freddie Mac said that while higher mortgage rates continue to affect affordability, improving inventory and slightly lower listing prices suggest the housing market is showing signs of adjustment.https://t.co/yiihzcmduM
— Mortgage Professional America Magazine (@MPAMagazineUS) August 7, 2026
Applications rise as borrowers adapt
Despite elevated borrowing costs, both purchase and refinance activity increased ahead of this week’s data, a sign that even incremental rate movement is enough to bring some buyers off the sidelines.
Freddie Mac chief economist Sam Khater said the trend reflects sustained borrower sensitivity. “Mortgage rates remained relatively stable this week at 6.67%,” Khater said.
“Housing affordability has improved from a year ago, and recent increases in purchase and refinance applications suggest that borrowers continue to respond to even modest changes in mortgage rates.”
The consensus view that high mortgage rates will keep the US housing market subdued through 2026 has hardened among most forecasters.
