Mortgage rates dropped last week despite heightened bond market volatility: Mortgage and refinance interest rates today, Thursday, August 20, 2026

Mortgage and refinance interest rates experienced a slight decline this week despite significant volatility in the bond market, reaching a 19-year high. The average 30-year fixed-rate mortgage stood at 6.65% through Wednesday, down from 6.67% the previous week, according to Freddie Mac data. Long-term government bond yields briefly surpassed 5.3% on Tuesday due to concerns over inflation and the growing fiscal deficit.

The Treasury responded by doubling its long-term bond buying program to support prices and lower interest rates, causing yields to fall initially but then rise again on Thursday. Mortgage rates generally follow the 10-year Treasury yield more closely. Market factors, including inflation fears and fiscal outlook concerns, are likely to keep mortgage rates from falling further or possibly increase them in the coming weeks.